Stoozing but remortgage coming up soon

Nuggy96

Hi all,

My wife and I are currently stoozing on around £34k of debt on 0% credit cards either purchase or balance transfer. This money is just gaining around 5% interest in bank accounts (split below by card along with when the offer runs out). However, our 5 year fixed mortgage is due to end in Jan 2025 and so we'll need to start looking around for mortgage offers. I was wondering what peoples' opinions are on paying it off and when to do it by? or can I keep some of it when I apply for a mortgage? First time remortgaging so unsure how it all works to be honest in terms of their searches and affordability. Any thoughts/opinions would be appreciated. Thanks in advance

£5k runs out in May '24 (50% of credit limit used)
£9k In October '24 (85% of credit limit used)
£8k in December '24 (85% of credit limit used)
£12k in Jan '25 (85% of credit limit used)

BoGoF

What about re-mortgage details how much/LTV? Salaries etc?

What are the monthly repayments on the CC's. 

Unless you are looking to stay with your current lender on a retention offer where checks are minimal then having that level of 'debt' is not a good look to a new lender.

Brie

Any mortgage provider is going to look at the credit available rather than just the credit you are using.  So if you income is such that you can easily service the full credit available on the cards plus monthly car insurance plus phone contracts plus overdraft as well as your mortgage payments there's no problem.  If you want to be more certain I'd at a minimum start closing down the ones that have the 0% ending sooner after you've paid them off in full.  Maybe do the October one a month or so early as it will take a couple of months for the information to update on to your credit history.  Maybe reduce the credit available on the other 2 as well?  

Once you get to Jan 25 and have them all paid off (even if not showing yet as closed) they mortgage providers will be able to see that you've cleared these which will look reassuring.  And once you get the new mortgage in place you'll no doubt be eligible for more deals and can begin stoozing again.

Hoenir

Brie said:

Any mortgage provider is going to look at the credit available rather than just the credit you are using.  So if you income is such that you can easily service the full credit available on the cards plus monthly car insurance plus phone contracts plus overdraft as well as your mortgage payments there's no problem. 

Other way round. People start with the best of intentions then an unexpected financial event turns their world upside down. In addition to which lenders have zero visibility or control over people's savings.