Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • Max Hughes
    • By Max Hughes 10th Jan 18, 9:42 AM
    • 4Posts
    • 1Thanks
    Max Hughes
    Clearing Debt Before Mortgage Application
    • #1
    • 10th Jan 18, 9:42 AM
    Clearing Debt Before Mortgage Application 10th Jan 18 at 9:42 AM

    I'm in a position where I have a decent deposit (40%) to buy a house with my wife this year. I'm looking to clear the majority of our debts before we submit an application. (Paying them off early)

    Is this wise?

    It'll free up around £440 per month and after clearing my CC the balance will be £0.

    We are leaving a car PCP agreement untouched and I'll be using the CC for day to day spends such as groceries and fuel, which I will clear monthly.

    I know mortgages these days are based more on affordability and monthly budgets etc. so I'm assuming paying off most of my debts and freeing up the monthly cash is a better than continuing with the debt?

    I have a decent credit score with the only negatives (apparently) being my CC utilisation is high.

    All advice is greatly appreciated.

Page 1
    • YHM
    • By YHM 10th Jan 18, 9:46 AM
    • 411 Posts
    • 138 Thanks
    • #2
    • 10th Jan 18, 9:46 AM
    • #2
    • 10th Jan 18, 9:46 AM
    The cleaner the application, the easier it will be to get approved.

    If you can get rid of unsecured, then do it
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,127Posts Today

8,948Users online

Martin's Twitter