Stoozing + Mortgage Applications

firesidemaid

hi there

can anyone tell me (either professionally or from personal experience) how stoozing might affect my credit rating when applying for a mortgage.

we are generally a good risk - good income, less than 50% LTV and no debts other than the stoozing. also, the stoozed money is sitting in savings accounts.

do lenders take this into account when applying for a mortgage ie. will they just see a large amount of debt or will they also 'see' the large savings amount too.

thinking about adding to my stooze pot again - mortgage due to change end feb 09, and whilst i will add to my stooze pot for 6 months i will have paid back a similar stooze amount in december.

thanks in advance

abouttimetoo

Hi firesidemaid

Sorry, I don't know the answer to your question but just wanted to suggest that you also post in some of the other sections e.g stozzing mortgages, credit cards and hopefully they will be able to help

Optimisticpair

I don't know the answer either but there is an overview on the following site about stoozing and mortgages.

http://www.stoozing.com/a_mortgage.htm

Hope that helps.

hallagdend

Hi there,

This may depend on the mortgage lender, but in my experience most mortgage lenders will just take into account the credit card debt but not the savings.

This may be more of a certainty in the current climate with lenders being so risk-averse

You can always go onto the lenders website and check to see if they have an affordability calculator. If so, it will tell you the maximum amount you can borrow. If it allows you to borrow the amount you require, there should be no need to pay off the credit card debt.

firesidemaid

thanks for all your replies.

i have phoned up and set the ball in motion - they did an on-phone credit check as part of the process and said everything seemed fine in principle.

also went to their website to check the affordability calculator - they will lend loads more than we need, there is a good leeway even with the 'debt'.

fingers crossed it will all be ok x

kiwigirl

I had a stooze card when I went for my first mortgage, had to clear the amount before they'd give me the mortgage or reduce the mortgage amount by same amount. Am with Halifax.

getmore4less

The extra borrowings should be taken into account.

The obvious thing to do is to look at offset mortgages if you want to continue Stoozing.

With a LTV of 50% it will be down to total borrowings against income.

Depending on cash flow and time periods of the stooze pot you could be borrowing less than the curent full mortgage anyway which may make it ok.

Just go for a Interest only offset to keep the cash flow on your side while stooozing.

firesidemaid

that's exactly what i'm doing at last GMFL!

at the moment, apart from my isa allowances, i am paying tax on my stoozing earnings - some interest monthly, some annually.

i suppose i'll just have to apply and see - just had a look at my credit report and it seems i am borrowing (stoozing) 44% of my available/'allowed' credit limit.

once the new mortgage is up and running next year, i hope to stooze as much of the other 56% as possible;).