Remortgaging w/ Credit Card Debt

NIGuy

We're looking to move from our current Nationwide tracker mortgage to an offset mortgage asap to cut our overheads.

Some details:

• Mortgage Capital: £110,000
• Combined Credit Card Debt: £12,000

We are aggressively paying down our credit card debt and aim to be rid of it inside 1 - 1.5 years. My question is, would it be better to:

1. Add our credit card debt to our new offset mortgage
2. Do the balance transfer game and get the mortgage separately, or
3. Get a low rate bank loan to pay off the debt and remortgage separately

I am unsure as to what the best course of action is. Your advice would be very much appreciated!

Trying_to_be_good

Offset mortgages tend to have higher interest rates than 'normal' mortgages.

They only tend to make sense if you have a lot of savings to offset, to counter-act the higher interest rate.

Currently you have debts, not savings, so I can't see why you're wanting to go for an offset rather than a lower interest rate on a 'normal' mortgage. Are you expecting to receive a significant sum of money soon?

glen8

option 2 but only if you make sure you pay x amount each month off the credit card.