Will this effect my chances of getting a mortgage?

bikeman17

Just got two new credit card from my current banks. I will be applying for a mortgage in Jan, because I have taken out two new credit cards will this effect my rating when applying for mortgage?

I have no previous loans, never late on payments, no bad credit history.

Please advice

opinions4u

Probably not, but I would consider the following:

- do not get any more credit searches
- do not build up any new debts on the new cards
- do not take any cash advances on any credit cards
- ensure all other contractual financial commitments are met

bikeman17

So do u think I got credit checked when applying for the credit cards

luckyfool

Yes, of course you did.

_Andy_

bikeman17 wrote: »

So do u think I got credit checked when applying for the credit cards

No, I doubt they bothered, what would be the point?

Let_Us_See

If you applied for the credit card then your credit file would have been checked. If the cards were offered to you as an existing client of the bank who has conducted their affairs in a prudent manner then you may not have had a `hard' credit check.

Do not be afraid to use your cards in a responsible manner as it could help to increase your credit score when you apply for a mortgage. A great deal of nonsense has been written about credit card balances and mortgages, but lender's tend to annualise existing credit card commitments (not cleared monthly) at either 3% or 5% per month and deduct this commitment from your salary for mortgage purposes.

For instance if your salary was £25,000 and the lender is willing to lend 4 x income, equals £100,000 borrowing. If you had £1,000 outstanding credit card commitments, the lender uses, say 5% per month, or £1000 x 5% = £50.00 x 12 (to annualise) = £600.00 per annum. Consequently, borrowing would be reduced to £25,000 - £600 = £24,400 x 4 = £97,600 borrowing.

Responsible use of your credit card will not prevent you from applying for a mortgage and with some lenders it may even help. What is does do is simply reduce your borrowing capacity.

bikeman17

I found a property prices at £240,000.

Annual Income before tax is £29,000 (bases on two incomes). I can afford to put of deposit of £70-80k. Therefore I will be requesting a mortgage of around £180k.

I am looking for an interest only for 1yr mortgage plan - which bank will suit me more?

Any advice?

opinions4u

bikeman17 wrote: »

I found a property prices at £240,000.

Annual Income before tax is £29,000 (bases on two incomes). I can afford to put of deposit of £70-80k. Therefore I will be requesting a mortgage of around £180k.

So you want to borrow 6.2 times joint income.

I am looking for an interest only for 1yr mortgage plan

And you intend to repay the capital how?

which bank will suit me more?

One with clouds and cuckoos on its logo.

bikeman17

opinions4u wrote: »

So you want to borrow 6.2 times joint income.

And you intend to repay the capital how?

One with clouds and cuckoos on its logo.

not sure what to say you left me speechless. Should i reply saying 'forget buying a property' or 'what about if i asked for a repayment mortgage, which bank would be best?'

by the way did i forget to mention, i am intending to rent the property out over a period of 35years+

Thanks

Wutang_2

bikeman17 wrote: »

not sure what to say you left me speechless. Should i reply saying 'forget buying a property' or 'what about if i asked for a repayment mortgage, which bank would be best?'

by the way did i forget to mention, i am intending to rent the property out over a period of 35years+

Thanks

Firstly, it clearly did not leave you speechless,

you need to either speak to a whole of market advisor to let you know that its not going to happen OR pop back to trollworld and get me a t-shirt.