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Re-Mortgage and Credit Card - Advice please :)
Barricade
Posts: 111 Forumite
Hello everyone,
Firstly, apologies if this isnt the right forum for this question!
Its been a while since I posted last and I'm glad to say that we're fast approaching the end of our 5 year fix on our mortgage. We'll begin looking to remortgage around August 2019.
During the time we've had the fix, we've done a few things and I'm looking for advice on the best approach forward.
We took out some equity on the house to pay for a 4th Bedroom/Ensuite extension. Due some issues along the way, we ended up paying for the bathroom suite on a credit card (0% - to Oct 19).
We also got married and had our honeymoon which went onto credit card #2 (0% - to Apr 20).
The value of the house, according to Zoopla has gone up by about 60k, to 250k. We will have approx 143k left (before interest etc) to pay come the end of the mortgage fixed term.
Our credit card balances are £5400 and £6800 respectively, with payments of £250/mth going to each and we do not use this cards at all.
Our question/advice request really is as follows..
Do we snowball the lower credit card and pay just above minimum on the 2nd credit card, to try and get it closed down before we remortgage?
OR
Do we continue with equal payments to both and let them fall naturally?
Our thought process is that when we remortgage, with the 2nd option, we'll be stating we have 2 creditcards with approx £8k split across them (if we work out 7 payments up to August) and we wonder whether it will have a negative impact on our remortgage application.
We're good earners (80k+) in solid jobs and other than a single car PCP, we have no other debt.
Many thanks for your advice!
Firstly, apologies if this isnt the right forum for this question!
Its been a while since I posted last and I'm glad to say that we're fast approaching the end of our 5 year fix on our mortgage. We'll begin looking to remortgage around August 2019.
During the time we've had the fix, we've done a few things and I'm looking for advice on the best approach forward.
We took out some equity on the house to pay for a 4th Bedroom/Ensuite extension. Due some issues along the way, we ended up paying for the bathroom suite on a credit card (0% - to Oct 19).
We also got married and had our honeymoon which went onto credit card #2 (0% - to Apr 20).
The value of the house, according to Zoopla has gone up by about 60k, to 250k. We will have approx 143k left (before interest etc) to pay come the end of the mortgage fixed term.
Our credit card balances are £5400 and £6800 respectively, with payments of £250/mth going to each and we do not use this cards at all.
Our question/advice request really is as follows..
Do we snowball the lower credit card and pay just above minimum on the 2nd credit card, to try and get it closed down before we remortgage?
OR
Do we continue with equal payments to both and let them fall naturally?
Our thought process is that when we remortgage, with the 2nd option, we'll be stating we have 2 creditcards with approx £8k split across them (if we work out 7 payments up to August) and we wonder whether it will have a negative impact on our remortgage application.
We're good earners (80k+) in solid jobs and other than a single car PCP, we have no other debt.
Many thanks for your advice!
Geek by Nature.. Geek by Profession!
Home Owner as of 01/10/2014
Married to my Soul mate 15/06/2018
Home Owner as of 01/10/2014
Married to my Soul mate 15/06/2018
0
Comments
-
£8k card debt is £8k card debt.
It won't matter how it's split. It will simply see your affordability "taxed" by about £400 a month.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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