Applying for 0% card before a remortgage

dominod

Hi all.

We're looking to remortgage in April.
I have a card with Barclays that I'm easily and happily reducing every month by considerable amounts however, the Credit Club from here has told me I'm 100% likely to be accepted for a Virgin Money balance Transfer card at 0% for 29 months.

Is it worth the risk of going for this? Just how reliable are the % rates shown?

I don't miss payments on my card and always pay more than the minimum amount.

Any advice appreciated.

Nebulous2

Are you paying interest on your current card?

How do you intend to remortgage?

If your current lender has decent remortgage rates, and you aren’t changing anything such as length or amount of mortgage, then a remortgage could be very simple.

If you are paying interest at the moment it’s very unlikely that moving to a promotional rate will do any harm. I’d certainly try to get the 0% and worry about the mortgage later. The debt will be the same come remortgage - or even less if you put what you would have paid in interest into repayments.

dominod

Yes, currently paying interest on the card balance at the moment.

As for remortgage, we're not with the best but we're hoping to either go with a better lender or get a better rate. Currently with Aldermore and April will mark 2 years.

I'd still be paying the same amount per month on the card, i.e. What I'd have been paying in interest going on to the balance instead.

I'm just concerned about being knocked back for the card despite MSE showing 100% likely. It's taken a while to get my credit profile/status back in to a decent state and don't want to hinder progress!

[Deleted User]

One search will have no impact, do just apply for it.

dominod

The other question would be how likely is the credit limit with the new card to be equal or higher than the balance I want to transfer?

...and then, the question would be based on metrics on here saying better to have less than 60% utilisation; if the limit on the new card is at or just above the transfer amount, its screws that up, right?

[Deleted User]

No, because you'd also have your existing card, so your utilisation will be very low.

dominod

Decided screw it and applied.

Accepted... And with a MUCH higher credit limit than the transfer I wanted to do.

All good I guess