Credit card default and mortgage

enthusiasticsaver

Given a BTL mortgage is not treated exactly the same as a residential mortgage there is every chance that the lender could credit score her if her deal expires so knowing when that is is very much relevant.  However credit card companies do not go informing mortgage lenders (as presumably they do not know who her lender is) but defaults will show on her credit record.  The BTL mortgage is more serious but in some cases a residential mortgage is cheaper than a BTL and they require lower deposits. The biggest issue could be though that they insist on her converting to repayment. 

If she  has got to the stage of not being able to afford minimums on the credit cards and is robbing Peter to pay Paul she is on borrowed time and will need to deal with it soon. She should speak to her mortgage lender first and not prioritise credit cards over her mortgage so if they insist on converting to repayment ( how much depends on how old she is as obviously a longer term will be lower repayments.) then she will not be able to afford the credit card payments and will have to default.  At least she will have sorted the mortgage first though. 

FlorayG

enthusiasticsaver said:

Given a BTL mortgage is not treated exactly the same as a residential mortgage there is every chance that the lender could credit score her if her deal expires so knowing when that is is very much relevant.  However credit card companies do not go informing mortgage lenders (as presumably they do not know who her lender is) but defaults will show on her credit record.  The BTL mortgage is more serious but in some cases a residential mortgage is cheaper than a BTL and they require lower deposits. The biggest issue could be though that they insist on her converting to repayment. 

If she  has got to the stage of not being able to afford minimums on the credit cards and is robbing Peter to pay Paul she is on borrowed time and will need to deal with it soon. She should speak to her mortgage lender first and not prioritise credit cards over her mortgage so if they insist on converting to repayment ( how much depends on how old she is as obviously a longer term will be lower repayments.) then she will not be able to afford the credit card payments and will have to default.  At least she will have sorted the mortgage first though. 

Thanks for this I will pass on the information. I think she's dug herself a hole she can't get out of though if her CC score is going to affect her mortgage. As I said before, in the end it's up to her to sort out her life but she's had so much conflicting advice I'm just trying to find out the truth of the matter; I was hoping I would find out something that would make things a bit easier for her if she did it, but it seems not