Credit card debt & mortgage application

Terry111

Hi All

I have £9k of credit card debt on a 0% card. The rate expires in July and my mortgage renewal is in October.

I have the £9k in the bank but I like having the flexibility so I plan to transfer the balance on to another 0% card.

Can someone please advise how this would affect any potential mortgage application? Obviously I have to disclose the debt but if I didn’t do banks have a way of finding out the debt is in place?

Many thanks

JReacher1

What do you predict the credit card debt will be in October?  £9k is quite a lot of debt to be carrying

Terry111

The maximum will only ever be 9k. It’s just there for flexibility and earn interest. I pay the minimum balance every month and have £9k in savings.

MFWannabe

If you stay with current mortgage lender then it would just be a product transfer to new deal so no credit checks etc required 
will only affect (not sure how much) if you choose to go to another lender 
but it will also dependant of income, mortgage debt etc 
9k debt is a lot to some but minimal to others 

ACG

Do you intend on keeping the debt or paying it off prior to completion of the mortgage?
Most (not all) mortgage lenders will ignore the debt if it will be paid off prior to completion. On the application form, there is normally a tick box to say it will be cleared. 

If it will remain, then it just goes down as an expense. Typically they use 3% of the balance as a repayment rather than what you are actually paying. 

Terry111

Thank you. To be honest, I’d rather not pay it off but will do so if it has a detrimental affect to the application.

if I tick the box do I have to prove it has been paid off?