Move overdraft + credit card debt and remortgage - what order?

3 Posts

in Credit cards
Hi,
My husband and i have a joint mortgage which is on a variable rate we want to remortgage for a better rate, he is working I am now on benefits. Our mortgage has gone up from £536 to £700 in a matter of months.
I have a NatWest credit card in my name which has is on 18.9% with £1400 on it - we want to see if we can get a balance transfer to a £0% card in my husband's name as I'm not working, or can would I be accepted with benefits?? Don't know how much I'm getting yet.We currently pay at least £100 a month off on this.
We have a joint bank NatWest account which is £3000 overdrawn - we want to open a new bank account to use - hopefully with cashback so we can regard this as a debt we just pay money into each month and pay off. Could we transfer this overdraft to a 0% credit card to enable us to make faster dents in the actual amount owing rather than interest - the interest this month was £17 but I couldn't see the APR.
I don't know what order we should tackle these things in - if we switch our bank account first could it stop us getting a mortgage deal?
Should we move the overdraft to %0 first and leave the credit card alone for now? Although if my husband gets accepted for 0% card maybe his limit wouldn't be high enough to do that. Or maybe we need to sort all this first before getting a mortgage review and spend a month reducing our spending so we look like a better bet?
My husband earns £21,500 a year and his contract runs out in March has been extended from original contract which started June 2021.
I had to leave work after being ill and am still struggling and would really appreciate a steer in the right direction.
Thanks in advance,
Jill
My husband and i have a joint mortgage which is on a variable rate we want to remortgage for a better rate, he is working I am now on benefits. Our mortgage has gone up from £536 to £700 in a matter of months.
I have a NatWest credit card in my name which has is on 18.9% with £1400 on it - we want to see if we can get a balance transfer to a £0% card in my husband's name as I'm not working, or can would I be accepted with benefits?? Don't know how much I'm getting yet.We currently pay at least £100 a month off on this.
We have a joint bank NatWest account which is £3000 overdrawn - we want to open a new bank account to use - hopefully with cashback so we can regard this as a debt we just pay money into each month and pay off. Could we transfer this overdraft to a 0% credit card to enable us to make faster dents in the actual amount owing rather than interest - the interest this month was £17 but I couldn't see the APR.
I don't know what order we should tackle these things in - if we switch our bank account first could it stop us getting a mortgage deal?
Should we move the overdraft to %0 first and leave the credit card alone for now? Although if my husband gets accepted for 0% card maybe his limit wouldn't be high enough to do that. Or maybe we need to sort all this first before getting a mortgage review and spend a month reducing our spending so we look like a better bet?
My husband earns £21,500 a year and his contract runs out in March has been extended from original contract which started June 2021.
I had to leave work after being ill and am still struggling and would really appreciate a steer in the right direction.
Thanks in advance,
Jill
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Replies
You can't use a normal balance-transfer card, but you can use a money-transfer card - assuming you're accepted for one, of course. There's often a fee to pay for doing the transfer, so just factor that into your calculations. But it's definitely a good idea to pay off the overdraft. Apart from being a very expensive way of borrowing, a bank can actually remove the overdraft facility and demand immediate and full repayment at any time.
Switching bank could be a issue. As you would need to find a bank that would give you a O/D to match what you have now, as a full switch will mean that account is closed.
So switch may not be a good move if wanting to remortgage.
Maybe find a mortgage broker local & see if they can find good deals, but that is not going to be easy at the moment. Especially if you are not working, which I guess was included in getting the mortgage you have now.
I would look at the debt board & a statement of affairs.
.withdrawal, NOT withdrawel ..bear with me, NOT bare with me
.definitely, NOT definately ......separate, NOT seperate
should have, NOT should of .....guaranteed, NOT guarenteed