Balance transfer - mortgage application

Soku

Hi. I have a credit card with a very high interest rate. I applied for a new one with 0% interest rate to save a lot of money. It got approved.

I haven't transferred any money yet, because I have applied for a mortgage. My documents are still being assessed by the bank. I didn't expect both things to happen at the same time, but the property I always wanted came on the market.

Would the balance transfer to another card to save significant amount influence bank's decision on mortgage? Should I wait for a mortgage offer to move money between credit cards?

Marky4040

Soku said:

Hi. I have a credit card with a very high interest rate. I applied for a new one with 0% interest rate to save a lot of money. It got approved.

I haven't transferred any money yet, because I have applied for a mortgage. My documents are still being assessed by the bank. I didn't expect both things to happen at the same time, but the property I always wanted came on the market.

Would the balance transfer to another card to save significant amount influence bank's decision on mortgage? Should I wait for a mortgage offer to move money between credit cards?

The outstanding CC balance will be seen by the banks credit scoring regardless of which card it's on. It's the credit card application itself which can be detrimental to your mortgage application, however its there now, a hard search on your credit file at the same time your applying for a mortgage. tut. tut.

If your credit and borrowing history is good though it shouldn't have a significant impact but always difficult to predict what lenders don't like at this stage. 

Move the balance if it saves you money it will make little difference to your application now.

Soku

Very good points. I didn't plan to buy a house, but an unexpected opportunity came up and had to apply for a mortgage.

It was just a coincidence it's happened at the same time. I wanted to clear as much money as I could before buying a house in June, but things started to happen in February.