Credit card and mortgage conundrum!

FrozenPlanetFan

I have a bit of a conundrum concerning my current credit card, my mortgage and my credit rating.

I currently have £3000 on an MBNA credit, which I've had at 0% for the last 2 years. This interest rate runs out in January.

In May my 2 year fixed term on my mortgage runs out. I intend on selling my current home and relocating closer to my new job. I intend to buy a new house, very much within my budget.

My credit rating currently sits at 849. Should I get a new 0% interest credit card in January and transfer my current balance over? This will undoubtedly affect my credit rating, which will affect what mortgage I can get. Or should I just take the hit on the interest for 3/4/5/6 months until I can sell my house. I will be paying off my credit card with the profit from my house sale anyway.

Thanks in advance for all advice.

DCFC79

FrozenPlanetFan wrote: »

I have a bit of a conundrum concerning my current credit card, my mortgage and my credit rating.

I currently have £3000 on an MBNA credit, which I've had at 0% for the last 2 years. This interest rate runs out in January.

In May my 2 year fixed term on my mortgage runs out. I intend on selling my current home and relocating closer to my new job. I intend to buy a new house, very much within my budget.

My credit rating currently sits at 849. Should I get a new 0% interest credit card in January and transfer my current balance over? This will undoubtedly affect my credit rating, which will affect what mortgage I can get. Or should I just take the hit on the interest for 3/4/5/6 months until I can sell my house. I will be paying off my credit card with the profit from my house sale anyway.

Thanks in advance for all advice.

I know your rating will not affect a future mortgage. No 1 else can see the rating, lenders see your history.

Why not apply for a new 0% card, just make sure its the correct type, I believe a balance transfer might be what you need.

I cant see you not getting a decent rate with having the new card.

System

FrozenPlanetFan wrote: »

This will undoubtedly affect my credit rating, which will affect what mortgage I can get.

No it won't because lenders don't use the mickey mouse scores the CRAs give you, they generate their own using their own criteria.

If you are selling the house in the next 6 months I'd do the maths on remortgaging as if you're in a fixed deal there will likely be a penalty of 6 months interest for leaving it early. As for the credit card debt shift it to a 0%.

Dettol

Shift the card debt to a long 0%...i doubt it will effect your overall perceived debt with remortgage as debt ratio is still the same isnt it.

[Deleted User]

Assuming there's no way you could pay the debt off now? Any savings?

If you used savings to pay off the debt then needed the savings, you'd just spend on the card (do keep some savings though for things you aren't allowed to pay with a credit card - e.g. Mortgage).

That would save you getting a new search & account on your file - accounts opened in last 6 months is a factor in credit scoring.

As long as you haven't got a bucket full of searches or new accounts in the last year, it'll make minimal difference. I'd do it sooner rather than later though - older the search, lower the effect.

At work I've approved somebody that's had 3 searches this month (only 4/5 in 12 though IIRC). Depends on every lenders criteria and risk appetite, but unless searches were in double digits I wouldn't be concerned.