Shifting Mortgage to credit card

[Old Hack]

Ok so for 5k that is £200/year which is £400 over the 2 year duration. £400 extra in my pocket is worth the 10 mins it will take me to do the transfer.

In addition to that it is going to bring down the interest rate I will have to pay to the bank due to the LTV. there we are talking about much larger amounts of money.....

That's suggesting the mortgage rate is 4%

What is it currently?

[NorthWestPerm2Contr]

No, it will not bring your LTV down, as now they include all debt as part of the process, and you already have that debt

Since when?

[DimPrawn]

No, it will not bring your LTV down, as now they include all debt as part of the process, and you already have that debt

WHS.

They will pickup all loans and credit card debts and subtract that from any equity and deposit on a mortgage, as this debt is included along with the mortgage debt when calculating LTV.

So, really, apart from a few hundred quid saved (do it for that purpose if it makes you happy), there's no point.

[DimPrawn]

Since when?

I got a mortgage 6 months ago.

Every credit card I'd ever had was on their list, and they subtracted every amount as part of the mortgage offer. Fine tooth combe to get a mortgage now, anything looks "suspicious" and the offer is removed.

[Old Hack]

Since when?

They've been discussing it for about 4 years, I believe it came in this year; all debt has to be considered under affordability. I think, to be honest, they'd even worse case the money at 0%. There was talk that they'd also look at your affordability if interest rates went up 5%. It's all to stop another big bang, and crazy lending - my 3rd mortgage was given over the phone for an investment property in 2008 on no more than a phone call where I gave my contract rate. I got someone in immediately to pay rent on it. This will not happen again, as you will see checks made drawing out the application.

[NorthWestPerm2Contr]

I got a mortgage 6 months ago.

Every credit card I'd ever had was on their list, and they subtracted every amount as part of the mortgage offer. Fine tooth combe to get a mortgage now, anything looks "suspicious" and the offer is removed.

They didn't seem to do that with me....

[DimPrawn]

They didn't seem to do that with me....

Lucky you.

You seem confident it's a good idea, so go right ahead.

[jmo21]

Been transferring credit cards since my uni days. Always have a direct debit set-up with minimum payment. Never had a late payment. When 24 months is over I will simply transfer to another credit card - as I have been doing for many years. Worst case scenario is to take out a loan - but overall will be better off as I will have enjoyed large periods of very cheap credit.

yep, been doing the same myself.

I always have some 12-18 month 0% deal on the go, max it up to it's limit (usually 4-6K) and let that ride out to the end of the deal, paying the min each month, and clearing it at the end.

[DimPrawn]

yep, been doing the same myself.

I always have some 12-18 month 0% deal on the go, max it up to it's limit (usually 4-6K) and let that ride out to the end of the deal, paying the min each month, and clearing it at the end.

Nothing wrong with that game, just don't expect the mainstream mortgage lenders to turn a blind eye to it, that's all.

[Old Hack]

They didn't seem to do that with me....

I think possibly you dodged it, maybe got in just before. It was set for this year, with even tougher regulations coming in from the EU next year.