Moving to 0% Credit Card During Remortgage

Hi, 
I want to move from my 19% APR credit card to a new 0% credit card with a balance transfer. I am currently undergoing a remortgage, it's already been approved and just waiting for documentation. Am I OK to change credit card providers during this or will it effect the remortgage? Thanks.

Comments

  • As long as your're not increasing your debt and moving to a promo rate, it should be ok.
  • As long as your're not increasing your debt and moving to a promo rate, it should be ok.
    No not at all, it's purely to save on the monthly interest payments after my 0% offer with MBNA ended. 
  • nic_c
    nic_c Posts: 2,928
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    The only thing is it may show balance on both cards for a month, so might need to show no overall debt balance increase if the mortgage company flags it.
  • Partly playing devil's advocate here, but I'd be very wary of doing it until you complete.

    Some lenders will rightly take a "common sense" view that you've not increased total debt and (assuming you didn't declare during application the debt would be repaid!) you're putting yourself into a better financial position by shuffling cards around.

    Other lenders would be subject to credit scoring. The fact is all/a number of the following will happen:
    1. New credit search
    2. Newly opened account
    3. Closed account which has been open for some time (presumably approx 2 years+)
    any/all of the above could cause your internal credit score with the lender to drop. You won't know if you were a borderline case or not to start with.

    There was a case on the mortgage board a few days ago about someone who's internal credit score had dropped (admittedly they don't appear to have helped themselves, as IIRC they took multiple items of credit out!), but the end result is that it is coming back to bite them.

    I assume completion is reasonably soon? I'd personally avoid it. In reality, it should be fine - but do you want to risk being that 1 in 100 case that's affected by being scored lower and now you have to start all over again (potentially)??

    After offer, you could be re-credit scored at the lender for any number of reasons (audit, solicitor request, spelling/address errors etc.)
  • foxy-stoat
    foxy-stoat Posts: 6,879
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    If its a remortgage with the current lender with no additional borrowing then you will probably be ok, they may not even credit check you.
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