0% balance transfers and opening / closing accounts

4Timbo

Hi all. Was looking for a little advice.

I am self employed (business owner), my wife employed. We have 2 children.

We are homeowners with a mortgage on our home. We have recently taken on a second property as a gift and plan to take out a buy to let mortgage at the full 75% of the value. We have a mortgage in principal for this already.

We are trying to keep ourselves looking favourable to mortgage companies in run up to this. However we are currently at the very limit of our overdraft and credit card on our joint account. Total £5,000 and struggling to get out of this position.

I want to take a 0% balance transfer card out to put the £3,000 from our credit card onto this (Currently paying high interest). In addition I want to switch our current account to a new one and chip away at the overdraft.

Both the balance transfer and new current account are definitely the right things to do for us financially but I am concerned how this will affect our credit file short term.

What will look worse on our credit file in the eyes of a mortgage lender, staying put at the limit of our available credit or opening new accounts and closing old ones so soon before applying for second mortgage (in approx 3 months)?

Sorry if a bit of a lengthy question hoping someone can offer advice 😃

[Deleted User]

Transfer your debt to 0% if you can, but there is no specific need to close your other accounts.

M