Remortgage - clear CC debt or seek to include it?
Discussion
Our low rate comes to an end later this year and we are looking to remortgage. We've got around £5k on credit cards over a couple of cards which are being paid off at £500 a month.
Our LTV is possibly just under 40% (£150k outstanding off £395k value).
Question is do lenders want everything cleared as much as possible before remortgage? Also, will they be willing to remortgage at say £155k to pay off the CC or is this frowned upon these days?
Our LTV is possibly just under 40% (£150k outstanding off £395k value).
Question is do lenders want everything cleared as much as possible before remortgage? Also, will they be willing to remortgage at say £155k to pay off the CC or is this frowned upon these days?
Our lender didn't care about my credit card (£5k) or my car on pcp £17k. I had the funds in the bank and never told the lender I was clearing them off.
I declared them as a out going as at the time they where, I got the car on pcp rather than paying cash as I got a few more £kk knocked off to do so and kept the funds in the bank.
My lender checked if it made a difference if i cleared it or not before at pre lending and it didnt so left it expecting me to keep the funds to put into the deposit but i cleared the items to reduce monthly outgoings instead.
I declared them as a out going as at the time they where, I got the car on pcp rather than paying cash as I got a few more £kk knocked off to do so and kept the funds in the bank.
My lender checked if it made a difference if i cleared it or not before at pre lending and it didnt so left it expecting me to keep the funds to put into the deposit but i cleared the items to reduce monthly outgoings instead.
soxboy said:
Our low rate comes to an end later this year and we are looking to remortgage. We've got around £5k on credit cards over a couple of cards which are being paid off at £500 a month.
Our LTV is possibly just under 40% (£150k outstanding off £395k value).
Question is do lenders want everything cleared as much as possible before remortgage? Also, will they be willing to remortgage at say £155k to pay off the CC or is this frowned upon these days?
If it doesn't affect affordability then you wouldnt need to clear the credit cards. You could potentially remortgage to repay the debts as LTV is low enough but would depend on the lender.Our LTV is possibly just under 40% (£150k outstanding off £395k value).
Question is do lenders want everything cleared as much as possible before remortgage? Also, will they be willing to remortgage at say £155k to pay off the CC or is this frowned upon these days?
Sarnie is the man to speak to next as our friendly broker.
soxboy said:
Our low rate comes to an end later this year and we are looking to remortgage. We've got around £5k on credit cards over a couple of cards which are being paid off at £500 a month.
Our LTV is possibly just under 40% (£150k outstanding off £395k value).
Question is do lenders want everything cleared as much as possible before remortgage? Also, will they be willing to remortgage at say £155k to pay off the CC or is this frowned upon these days?
It's all about affordability, they would lend to you with £100k on CC's if your income was sufficient to absorb it.Our LTV is possibly just under 40% (£150k outstanding off £395k value).
Question is do lenders want everything cleared as much as possible before remortgage? Also, will they be willing to remortgage at say £155k to pay off the CC or is this frowned upon these days?
So, they won't insist they are paid off before remortgaging or insist on them being consolidated, if your affordability is sufficient.
Again, they will let you consolidate the cards but if doing it with the current lender, it will trigger a full underwrite..........
Sarnie said:
soxboy said:
Our low rate comes to an end later this year and we are looking to remortgage. We've got around £5k on credit cards over a couple of cards which are being paid off at £500 a month.
Our LTV is possibly just under 40% (£150k outstanding off £395k value).
Question is do lenders want everything cleared as much as possible before remortgage? Also, will they be willing to remortgage at say £155k to pay off the CC or is this frowned upon these days?
It's all about affordability, they would lend to you with £100k on CC's if your income was sufficient to absorb it.Our LTV is possibly just under 40% (£150k outstanding off £395k value).
Question is do lenders want everything cleared as much as possible before remortgage? Also, will they be willing to remortgage at say £155k to pay off the CC or is this frowned upon these days?
So, they won't insist they are paid off before remortgaging or insist on them being consolidated, if your affordability is sufficient.
Again, they will let you consolidate the cards but if doing it with the current lender, it will trigger a full underwrite..........
Captain Raymond Holt said:
This is an interesting point - if the OP is paying back at £500/mth, for the purpose of affordability is he 'better' to drop to paying just the minimum payment?
Yes and no............the lender will use the higher of whatever they are paying or circa 3% of the balance as the monthly payment......so, at £500pm that may (or may not, depending on all of the figures at play) adversely affect his affordability......Gassing Station | Finance | Top of Page | What's New | My Stuff