Re-mortgage. Personal loan Vs credit card

Legacy_user

Hello mse community.
I am due to re-mortgage my home in few months and would like get best possible deal. I want to clarify few things before visit a mortgage broker.

I have a personal loan 5k which I can pay off with my credit card (I have an interest free offer on cash transfer for 24 months at the moment).

What option is better in terms of to get best mortgage deal:

1. Pay off a personal loan and have a balance (debt) on credit card

2. DO NOT have any balances on credit cards and leave as it is (pay personal loan as normal)
I can't pay off personal loan at the moment without using a credit card (no savings and no family or friends who lend money)

I read somewhere that lenders likes balances(debt) on credit cards rather than personal loans.

Is it true?

Regards,
DL22 :beer:

[Deleted User]

Not really. Debt is debt.

If you have to have it, get it at the lowest rate you can.

chunkytfg

Credit card would allow lower interest rates and overpayments to get the debt down quicker.

A loan is probably a fixed amount that can't be overpaid.

System

That's what I wanted to know. Thanks

Thrugelmir

Lenders know when credit card balances are on promotional rates.

What happens when the 24 month interest free period ends?

Does the cash transfer not incur an upfront fee?

System

I will pay cc within 20 months.
Upfront fee is 4%. It will work cheaper and faster in my case.

getmore4less

What rate is the £5k loan(is that the outstanding balance?)
What is the min payment on the CC of you BT the loan?

System

5k is outstanding balance with 3% APR. Just now called to Tesco bank and found out that Tesco allows to make extra payments towards the loan/balance and I have two options 1. Reduce amount of monthly payments 2. Reduce term of loan.

This change the game.

I am able to pay double amount that I am paying now and reduce term of the loan from 36 months to 18.