Remortgaging with credit card debt

pat1783

Hi,

Apologies if this has been asked before or is another thread somewhere, I’m just trying to do some planning ahead for when my fixed term mortgage is up towards the end of this year.

I guess my question is, are lenders as strict on their criteria when it comes to remortgaging? I was a first time buyer in November 2018 with precise mortgages - I found it hard to get a great deal because of my credit history. When I was applying for the mortgage I had one credit card with a limit of £250 and an overdraft of £3000 which had been on my file for years (defaulted) and brought my score down quite drastically.

Since becoming a homeowner I’ve never missed a payment on my mortgage, and Halifax wrote to me to tell me they were writing off the £3000 overdraft due to a fault at their end and that this would be wiped from my credit file :j however I now have 2 credit cards, one with a £1000 limit and one with a £900 limit. By the time my remortgage comes around I could potentially have the majority or the whole balance of those cards paid off (at the moment the total balance on the cards is about half of the limit). I’ve never missed a payment on these cards and have been making considerably higher payments each month to help clear the balance.

Would paying them off completely help me get a better remortgage deal? Or am I stressing over something that wouldn’t have that much affect on it? Has anyone been in this situation before?

Thanks

yksi

Is the default actually removed, or a debt marked as settled? Did you check your reports?

Get the cards paid off asap, pay the minimum on the lower % and every spare penny into the higher one. You're spending money on interest for no reason, and that's a good enough reason to pay them off - not to mention it might lower the interest rate you get offered.