Remortgage with debts (loan and credit card)

KierNet

We're due to remortgage soon (due in November).  I've got a loan (£30 more a month than when I got the mortgage) and a credit card that is on 0% interest (balance transfer) with around £1,800 on there (limit is £3,500).  

I've done a load of overtime over the last couple of months (70 hours in July alone).  My aim is to pay off the credit cards as much as possible.  My reasoning being, although I have a loan that is more, I'm earning an extra £6,000 than when I first got the mortgage so shouldn't be any issues with affordability.  With the credit cards being as close to zero as possible it is there for an emergency.  So whilst I'm paying interest on the loan, the flexibility of having the credit card there is worth it.  

Is there a strong reason why I should put my overtime towards my loan rather than the credit card?  I wont be able to pay off the loan in full.  (overtime will be around £1,500-£1,800 currently unless I pick anymore up).

Sandtree

Are you remortgaging with your existing provider or looking to switch?

Outstanding debt is just used in the affordability calculations, you could have substantial debt and still get a new/re-mortgage as long as your income shows you can afford both. From my limited experience the calcs they do uses a fixed repayment for CCs and doesn't consider the interest rate

We remortgaged with our existing provider this month (due December) and as per last time they didn't ask any questions at all.s

KierNet

Sandtree said:

Are you remortgaging with your existing provider or looking to switch?

Whoever offers us the best deal.  

K_S

@kiernet

Product-switch/product-transfer/rate-switch - If you're not looking to borrow more or change the term, switching to a new product with your current lender should involve no credit-checks, no income/affordability checks, etc. So whatever you do with respect to your loan or credit cards should not have any impact on this option.

Remortgage (changing to a new lender) - If you have no issues with affordability, then with respect to the mortgage it shouldn't matter too much whether you use any excess cash to pay off the loan vs the cc.

If your fix is ending in November and you're considering a remortgage, there's no need to delay as most remortgage offers are valid for 6 months so you can lock in a rate now.