Remortgage and Debt Reduction Advice

Rhonda1981

Dear All,

I am looking to get some advice on what is the best position when remortgaging. After a difficult divorce, I am finally getting on top of things and reducing my debt at a rate of 1k per month.

Currently, I have 21,000 of credit card debt (all at 0%) and a loan of £18,370 with an APR of 3.3%. My fixed rate mortgage will expire in August 2020.

My plan to reduce my debt as much as I can before applying to remortgage to reduce my monthly payments next year. However, two friends have suggested that I should also consider leaving some of the credit card debt and overpaying on my mortgage for 6 months. This would put me into a lower LTV band at the time of the remortgage application.

I am now confused as to the best approach. Any advice would be greatly appreciated.

Rhonda

Thrugelmir

Continue to reduce your debts before overpaying the mortgage.

When do the 0% credit card promotional rates end? You don't want to be paying interest at a high rate in the future.

Even in 18 months time you are going to have a fairly high level of indebtedness.

Rhonda1981

The 0% transfers expire in June 2019, March 2020 and August 2121. I plan to clear the first two before the offers expire. So should I stick to debt clearance as the focus and not worry about the LTV?