Remortgaging - help and advice please!

Hillcroft80

Hi,

Looking for some help/advice on my current situation with myself and my partner, ahead of possibly moving mid 2025. We are currently working off some debt she accrued during Covid, when not working and current situation is as shown below.
Looking for any advice and guidance really as don't want to start any formal applications as yet, but keen to find out where we stand etc. Huge thank you in advance to any advice!

Jon

Current property and value: £490,000 with approximately £200k in equity.

Earnings: Me £59k and her £58k and looking at properties around £680k mark.

Debts: £28k across 4 cards. Currently paying off £750 a month.

CM: £525 pcm to my ex partner no payments either received or made by my partner.

Hoenir

Next year if you can afford a mortgage north of £500k while paying down credit card debt at £750 pm. Raises the question why you are unable to clear the debt quicker now. 

Brie

Re the cards - put them in order of interest being paid and put most of the money towards that as that will get you the furthest the fastest.  All the other set up the DD for a set amount a bit above the minimum allowing all the rest to go to the highest interest card.  As the debt on that card goes down lower the credit available.  You might want to look at doing the same on the others.

You're seeming to want a mortgage about £500k and your salaries look good for that.  But you'll also need to have enough to cover the CM, all the normal bills, have something for the move PLUS cover any overdrafts you might have available AND any other credit you are using (phone contracts, car insurance paid monthly etc) PLUS the full credit available on all of the cards you both have.  You mention £28k worth of debt on her cards but not what the credit limits are.  You both will need to prove that you can afford everything including if you max your overdrafts and all the cards you have.  That's why I suggest lowering the limits to make you look more credit worthy.  

Obvious advice too - ensure you're on the electoral register, check your credit history for any little surprises like unknown CCJs or bills that your forgot about.  Don't apply for any more cards or credit at least in the 6 months before applying for a mortgage.  

Hillcroft80

Thanks for a quick reply. Cards have the following limits on and being paid back in order of interest. The two larger balances are on 25 months at 0% from applications last month and 9 months ago.
Card 1: Amex £300 limit 15k. Paid off monthly. Full interest payable.
Card 2: Santander £3300 limit £4000. Full interest. Full interest payable.
Card 3: Virgin Money £1900 limit £11k.
Card 4: Halifix £12500 limit £13.5k

So you suggesting reduce the limits not being used? 

Hillcroft80

Hoenir said:

Next year if you can afford a mortgage north of £500k while paying down credit card debt at £750 pm. Raises the question why you are unable to clear the debt quicker now. 

We are hoping to pay more off and with a small payrise in September, will be able to pay nearer £900 a month off.