Balance transfer credit card timing pre-remortgage ?

ellie.rose

Hoping someone can help. My boyfriend has a credit card with c.£8,000 debt. He earns c.£70k per year and the monthly payments of £200 aren't a struggle for him to afford, BUT they mainly go on paying interest as it’s at about 19% (he is not an MSE aficionado sadly). I’ve advised him to balance transfer to 0% card ASAP (The thought of all that wasted money spent on interest really annoys/upsets me!) However he is looking to move house and expects to apply for a remortgage in late November/December. The question is, would applying for a balance transfer credit card now (late October) negatively affect his chances of getting the best mortgage? Even though it would improve affordability calculation by reducing his monthly outgoings (if paying minimum) and total debt (through reducing interest due). Or isn’t just the fact of a credit card application shortly before remortgage that would be negative? Thanks 

[Deleted User]

He should shift it to a 0% deal - if he can - as soon as possible. 

However, despite you saying he's not struggling with it, he must be with that low level of payment. And if he's not, then he's very poor with his money.  Neither will impress lenders.

getmore4less

£70k,  net ~£4k   £8k of debt?
any savings?
what are the numbers for the house move,  might be better of just paying it off.

foxy-stoat

Does he have a £600 PCP on a high performance car, sub 20mpg and does a lot of miles, or what about the other £50,000 of debt that you do not know about?

If you move the debt now it will have little impact on the future mortgage, unless he racks up more debt.

Best run a credit search on him just to see how much he is in the red.

ellie.rose

Thanks all. Good points above. I haven’t fully enquires about all his finances and I agree it seems bad with money to pay off so little when interest is so high. Will try to get to bottom of it. But key thing was how lenders would view the timing of a credit card application. Sounds like moving sooner would be better. Think he puts any savings into pension so doesn’t have cash to pay off card. Usually uses his annual bonus. Very poor habits but hopefully I can ‘educate’ him

foxy-stoat

He probably thinks its more tax efficient to pay interest on the credit card and pump more money into his pension.

Again, if your just moving the debt then it wont make any difference and if £8K is all he has and your numbers are ok then it wont make it an issue.

Thrugelmir

£70k pa income. Pays bare minimum of £200 on credit card.  What's his addiction?