Balance Transfer CC and Mortgage

high_sky28

Hi,

We’re looking to apply for a mortgage and, as a first step, are working to complete the Agreement in Principle (AIP). We currently have four balance transfer credit cards with outstanding balances. Although these are on 0% interest, we are making monthly repayments and expect the balances to be cleared within the relevant time frame. We’re unsure whether these outstanding amounts should be declared under the credit card section or as interest-free loans.

In addition, my partner is currently not working as she is on maternity leave and receiving Statutory Maternity Pay. Should we declare this amount as income to the lender?

If anyone has been through a similar situation, we would really appreciate your advice.

Nebulous2

These are credit card balances, and will show as credit card balances on a credit report. That will reduce the amount you can borrow for a mortgage. A lender will expect it to be declared as such. 

Isthisforreal99

Credit card debt is credit card debt regardless if it's 0%. What do you mean 'cleared within the relative time frame' - cleared by the end of the 0% offer or by the time you want a mortgage. You do realise these could have a big impact on affodability especially if only one of you is working.

Not sure on the SMP point, sometimes the list what is considered income?

Have you thought about a mortgage broker?

high_sky28

Thanks for the advice. I was thinking to cleared the Credit Card balances at the end of the 0% offer. However, you are absolutly correct, CC debt is debt, regardless if it is 0%. Anyway, planning to meet with a mortgage broker to discuss about the options. Once again thanks for your suggestions.