Is it better to pay off 0% debt before applying for mortgage
Discussion
Hi
I am hoping to either sell my house in the coming months or at least to remortgage (fix coming to end on 1st August).
I currently have a couple of 0% deals due to be completely paid off in the next 10 months which represent about 20% of my monthly income. I have the money in my saving account to pay these off now if I need to.
With the new rules coming in now, would we be in a better position to pay everything off? Including paying my current mortgage (which is not on a very good rate at the moment)I have about 40% free each month after all bills etc paid. Or would they not look at these as they will be paid off within the next year?
Thanks
I am hoping to either sell my house in the coming months or at least to remortgage (fix coming to end on 1st August).
I currently have a couple of 0% deals due to be completely paid off in the next 10 months which represent about 20% of my monthly income. I have the money in my saving account to pay these off now if I need to.
With the new rules coming in now, would we be in a better position to pay everything off? Including paying my current mortgage (which is not on a very good rate at the moment)I have about 40% free each month after all bills etc paid. Or would they not look at these as they will be paid off within the next year?
Thanks
It's impossible to say without knowing all of the details....
They will however take the balances in to account at application stage, if they are still present irrespective of when you state they will be paid by. How much impact it has on you is determined by your income, LTV, mortgage balance, outgoings and credit score.
They will however take the balances in to account at application stage, if they are still present irrespective of when you state they will be paid by. How much impact it has on you is determined by your income, LTV, mortgage balance, outgoings and credit score.
Bear in mind it takes circa 3mths for any debt to disappear off your credit file. So if you're applying for a mortgage in the next few months you'll have to declare the debt. The rate of APR being charged in the debt is irrelevant.
I know all this because I was asked the same questions today when going through my mortgage application with my intermediary.
I know all this because I was asked the same questions today when going through my mortgage application with my intermediary.
kmpowell said:
Bear in mind it takes circa 3mths for any debt to disappear off your credit file. So if you're applying for a mortgage in the next few months you'll have to declare the debt. The rate of APR being charged in the debt is irrelevant.
I know all this because I was asked the same questions today when going through my mortgage application with my intermediary.
But if you can provide a copy statement showing the card being cleared, that will suffice.I know all this because I was asked the same questions today when going through my mortgage application with my intermediary.
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