Is it ok to do this !!!

[CG7]

Hi,

 

My son and his partner have a new baby on the way and they really need to move house, he needs to get as much mortgage as he can, to enable him to buy somewhere a little bigger and so he wants to balance transfer his credit card balances on to mine, to free up equity so that on paper it looks as though he has no other debts, which will give him more money (mortgage wise) to buy another property with. 2 questions really,

 

1. Can i balance transfer his credit card balance on to my own credit card.

 

2. Is it legal to do this ??

 

 

 

Regards,

 

cg

[gizmo111]

It is perfectly legasl to transfer his balances to you - but be aware that while his debts are in your name you will be wholly responsible for them. It sounds rathertliek they are strugglign and would be better off throwing every spare penny at the debts they have before they consider taking on more.

 

Not sure what you mean by free up equity?

[CG7]

How do I go about transferring his balance to mine, we have the same surname, but different christian names and he is not at the same address as me either, does any of that matter ?

 

cg

[CG7]

bump !!

[Goldlady]

It won't affect mortgage application if you have credit cards - unless they are in default or have massive balances. Are you going to pay the debts too? As Gizmo says they will be fully your responsibility. It might be better to give them so much a month to help them out rather than increasing your own debt.

 

If you want to transfer the balance I think you would either need to draw the cash out of yours (at a cost) and pay his with the money unless your card company allows you to do transfers - you would have to check with them.

[Shanks]

As far as I am aware, most cc companies couldn't give two hoots who the original debt is from as long as you are putting more funds in their company's card it is them who win. In the past I have just called them and given them the details over the phone and the balance has transferred. Check the back of your last statement or go on-line to their site, the number is bound to be there.

 

I would echo gizmo111's words of caution though, and also if you are looking to do this then at least get a card that is offereing a good rate for transfers. You might be able to reduce or even zero the interest rate for a while.

 

hth cheers

[gizmo111]

I echoe all of the above, the affordability calculation will be affected by owing a debt on a credit card, so in this case they will take off 3% of 1700 which is £51 per month of disposable income. Which in the grandscale of moving costs etc is minimal. Again I would suggest that before moving the family looks at their overall debt and budgeting and bases their needs on how that pans out over the next couple of years or so.

[CG7]

Thanks to you all for your advice.

 

If I don't do the balance transfer for him to help him out, he will hold it against me, saying i would not help them as they have a baby on the way and they need to move to get another bedroom. apparently they did some mortgage review a few months ago, where they moved to another lender at a better rate, and borrowed some money extra for the new kitchen thats just been put in, and they also borrowed enough to pay off this credit card, but they bought a caravan instead, which is why they need to balance transfer to me, otherwise the mortgage lender will know that they didn't pay off the credit card they borrrowed the money for. its so confusing.

 

cg.

[Goldlady]

I doubt the mortgage lender will even look at that - they could have run up the card debt again for all they know. Speaking as someone who has struggled with debt I don't want to encourage anyone to take on more.

[CG7]

Yes I know and thats just how i feel too, but he seems to think that it will make such a big difference to his application in that he didn't pay the credit card off, and that they will hold it against him. and he feels desperate about it all.

 

cg

[Goldlady]

I really feel for you cg and I really think you should not do it. But as a parent myself (kids all young so not too much of a drain yet) and with a mum who has helped me out many times I know how hard it is. You want the best for your kids but if it is going to cause you hardship you need to take that into account too. After all if they used the money to buy a caravan they have not been very responsible and if you bail them out they will probably just get into more debt for something else they really need ??. I am speaking from personal experience here. God bless my poor mother is all I can say.

 

If you can afford to help them then fine, but if not they need to learn about responsibility. (If my mother could read this ) If you had wads of cash in the bank it would be different but to expect you to take on debts is a bit much.

 

I helped my friend's mum (who is 65) file for bankruptcy a few weeks ago because she had helped her kids out with credit cards.

 

Sorry if I am speaking out of turn.

[make them aktiv runners]

I echoe all of the above, the affordability calculation will be affected by owing a debt on a credit card, so in this case they will take off 3% of 1700 which is £51 per month of disposable income. Which in the grandscale of moving costs etc is minimal. Again I would suggest that before moving the family looks at their overall debt and budgeting and bases their needs on how that pans out over the next couple of years or so.

 

I totally agree with Gizmo111. The effect on your son's borrowing ability is not a great deal. Making a minimum payment of £51pm would result in the mortagage provider offering a mortgage of £3060 less than if the card did not exist, and that is based on 5 x income. If your son firmly believes he needs that extra bit of mortgage then he his likely to be pushing his limits too much. Also a baby comes with a lot of expense, more than any new parent can guess so now is the time to tighten the budget, pay off the card and then move.

 

Your son may not like the fact he cannot get his own way butin the long-term you are teaching him a huge lesson. Trust me, he will thank you for it later.

[CG7]

Hello Goldlady and everyone who replied,

 

Thank you for your advice and your not talking out of turn at all.

 

I have had a word with him about it all, and he says that once the credit checks have been done with the Mortgage people, he will transfer it straight back on to my card, and that it should only be for a few weeks until its all final. I have been calculating the transfer fee and its about £50 each way, plus the interest i would imagine. but it still worries me I have to say.

 

Its very hard to say No to your children isn't it. He's had throat cancer recently, its been an awful 18 months and I feel as though he is living every day to full capacity. (if you understand).

 

Anyway bye and thanks all.

 

cg

[PKea]

I have had a word with him about it all, and he says that once the credit checks have been done with the Mortgage people, he will transfer it straight back on to my card, and that it should only be for a few weeks until its all final. I have been calculating the transfer fee and its about £50 each way, plus the interest i would imagine. but it still worries me I have to say.

 

I think you son has a tinted view of how credit checks operate, it reads like he thinks if he transfers the money over to you it will disappear.

If he has paying paying his bills on time it will be a good credit record as it Will show ability to control finances and operate the account within the limit. If he hasn't paid them on time, or not the minimum payment, the fact that he suddenly clears them off (be it paid by you) will not really affect it as the lender will be able to see that he has missed payments etc.

 

Also as a parent with young children i would echo others points regarding the costs, as you must well know, they aren't cheap, and adding on top a new mortgage plus all the decorating and changing the new home wont be

easy.

 

IMO as you say

If I don't do the balance transfer for him to help him out, he will hold it against me

he is trying to use emotional blackmail and if that is how he thinks to get the money out of you, he will use this to not pay you back, IE baby needs this, got decorate nursery etc.

 

My parents didn't help me to get my house, but the support, baby sitting and token gifts and small handouts they give me throughout the year have helped me more that a initial payout.

 

I am not trying to have a go at you, I just don't want your situation to get to a state where you are arguing or falling out over the repayment. I have seen things like this, split families and cause bad blood and I wouldn't wish that on anyone

 

PKea