Appplying for balance transfer credit card during remortgage

Tootdog

Hi, I've secured what I like to think is a decent deal on a 10 year fix fee for my remortgage. This has been approved and is currently with the conveyencer and will complete at end of November. So, credit check has been done and passed. 

The rub is that I have an interest free credit card with the 0% finishing this month, so I'd like to apply for a new card and balance transfer to a new 0% rate. HOWEVER, I don't want to jeopordise the mortgage deal I have lined up. 

NOTE - I will NOT be increasing my borrowing (so not affecting my affordability as it was assessed by mortgage co), just moving to a new provider to continue not paying interest. 

My Question: am I safe to apply for a new 0% card before my mortgage completes or is there a danger that this be seen by the mortgage provider (Lloyds) and viewed negatively? 

FYI, my credit rating is good (612/710 with Credit Karma and the only reason it isn't higher is due to the searches done by Lloyds and because I switched to a new current account recently). 

Advice appreciated! 

Cheers. 
Tootdog. 

K_S

@tootdog Not the exact same scenario, but the Q&A below may help answer your question. (click on 'show previous quotes' to see the initial question.

K_S said:

piglet2017 said:

I'm about to apply for a mortgage (FTB). I have some credit card debt on 0% offers, it's accounted for in my DIP so not a problem but one offer is due to expire on 18 July so I need to do a transfer. I'm wondering whether if I do my mortgage application this week that will be back in time for me to transfer once I have the mortgage offer, and if it's ok to do it that way? Or if I should do the transfer right now - but then it could be that when the bank look at my balance for the mortgage application the balance might not have been updated and so look higher than it actually is. I'm borrowing quite a bit below my max affordable amount though, so it might not be an issue?

@piglet2017 I can't comment on the impact on your specific case (may not have any impact if you're well within affordability, but it depends on the specifics, the rest of the details, how large the amount is in relation to your income, etc.) but generally speaking, it would be best to leave this until post completion.

If that's not an option, then it would be worth considering doing it after you receive the mortgage offer.

As you correctly point out, the potential issue with doing it now is that it may show up on the report for a good few weeks as two balances on two cards and confuse the automated lender system when it 'credit-scores' the application.

Tootdog

@K_S thank you for this! Like you say, slighlty different scenario but relevant advice. 

Is the mortgage provider likely to check my credit file again do you know, now that I have the offer and it is with the conveyancers? I would assume not. And thinking about it, I've told them that another CC with a small balance will be paid off before completion and they have said they'll need to see evidence of this in the form of a statment/letter from the CC provider, which further makes me think they won't run another credit check (as they could see this info on my report, presumably). 

Thanks again. 

kingstreet

Tootdog said:

@K_S thank you for this! Like you say, slighlty different scenario but relevant advice. 

Is the mortgage provider likely to check my credit file again do you know, now that I have the offer and it is with the conveyancers? I would assume not. And thinking about it, I've told them that another CC with a small balance will be paid off before completion and they have said they'll need to see evidence of this in the form of a statment/letter from the CC provider, which further makes me think they won't run another credit check (as they could see this info on my report, presumably). 

Thanks again. 

Yes. Lloyds mirrors the Halifax system and it re-scores several times during the process. If the data has renewed since the last time, the score may be affected.

Tootdog

Thank you @kingstreet, looks like I'd better err on the side of caution and see if I can secure an interest free bridging loan from the bank of Mum and Dad!