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  • 17-06-2015 7:08pm
    #1
    Toodles_27
    Registered Users Posts: 181 ✭✭


    Just looking for some advice please.
    Current home 10+years with Ptsb mortgage (not tracker) we were 1st time buyers. Now, we want to sell up and move on. Just want to have all our duck in a row before approaching banks.

    Would it be prudent to have credit card and credit unions loans all paid off before approaching bank? This may take a year or 2 but can be done however this would eat any personal savings we have.
    Also, my husband now has his own business which, thankfully, is doing well and has been for 2years now. Would the business bank account balance be taken into account when applying for a mortgage?
    Cheers for any advice.


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    #2
    coylemj
    Registered Users Posts: 25,437 ✭✭✭✭coylemj


    Toodles_27 wrote: »
    Would it be prudent to have credit card and credit unions loans all paid off before approaching bank? This may take a year or 2 but can be done however this would eat any personal savings we have.

    If you can afford the current repayments on the credit union loan as well as the increased mortgage repayments (on the new mortgage) then that won't be a problem. However a credit card 'loan' is a completely different kettle of fish - do you have a substantial balance on the credit card that rolls over each month? If you do, that will count against you big time.

    Your top priority should be to pay off the credit card and do so every month, leaving a balance of zero every time. The interest on credit card balances is way higher than any other form of personal credit you can get from the banks so it makes financial sense to clear the balance and it will improve your credit rating.


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    #3
    daheff
    Registered Users Posts: 5,866 ✭✭✭daheff


    I'd definitely have the Credit card balance cleared. Afaik credit card balances(loans) come up on credit checks, but credit unions dont.

    as for the credit union loan, it then becomes a case of 1- do the bank take it into account when issuing the new loan 2- is the rate of the credit union loan higher or lower than the bank loan. Higher, clear it and borrow more (if you can) from the bank. Lower dont pay it off and borrow less from the bank (ie use more savings)


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