Stoozing and Mortgages - dilemma

Nyquist

Hi

My mortgage (2 year fixed 4.99% on £180K) is nearing the end of it's introductory 2 years so i went to see a mortgage broker.

She asked me all about my finances including my credit card debts. I explained that i owed £4600 to virgin on a 0% deal but that all of that money was in savings accounts. £3000 an ISA and £1600 regular.

but i was stunned to discover that this would count against me. She claims that the debt would appear on my credit search but it wouldn't show the savings and this would reduce the amount of mortgage i can borrow. As I'm borrowing a lot in relation to my salary this is a serious problem for me as i was just on the threshold anyway.

does anyone know if she is correct? and if she is what should i do? should i give up my Stoozing campaign?

Thanks very much

Cheers
J

YorkshireBoy

She's quite correct that your debt will show on your credit report, but not your savings.

Personally, I wouldn't risk my dream house (or having to fall back onto my existing lender's SVR), just so I could make a few pounds a year through stoozing.

There's some useful information on the stoozing website...

Will Stoozing affect my mortgage application?

nrsql

Is £4,600 going to make that much difference?
Your salary should have gone up in the last two years and I think salary multiples for lending have probably increased too.

If it comes to that you would probably make a lot more by paying off the credit card to get a better deal.
5% ish on £4,600 for how many months against n% on £180,000 for years.

Don't get carried away with savings and pay more for debt.
You can always try another 0% cc when the mortgage has gone through.

AndyRat

When I changd mortgage last year, I took in a sheet of paper detailing all assets and debts, it might also be worth taking a copy of your last statement of your savings. The mortgage advisor I saw was impressed with this level of detail and was able to make a good offer based on my evidence.

Don't know if it would help with all companies, but it seemed to fo me.

Guess it can't hurt to try.

Nyquist

Thanks for everyone who's got back to me. interesting stuff

If i pay off and close my credit card now how quickly will that change be reflected in my credit search for my mortgage? any ideas? no point me closing it if my record will still show the borrowing in an adverse way.

thanks
J

PoorDave

Nyquist wrote:

Hi

My mortgage (2 year fixed 4.99% on £180K) is nearing the end of it's introductory 2 years so i went to see a mortgage broker.

She asked me all about my finances including my credit card debts. I explained that i owed £4600 to virgin on a 0% deal but that all of that money was in savings accounts. £3000 an ISA and £1600 regular.

but i was stunned to discover that this would count against me. She claims that the debt would appear on my credit search but it wouldn't show the savings and this would reduce the amount of mortgage i can borrow. As I'm borrowing a lot in relation to my salary this is a serious problem for me as i was just on the threshold anyway.

does anyone know if she is correct? and if she is what should i do? should i give up my Stoozing campaign?

Thanks very much

Cheers
J

I have read at least one post on here where a mortgage broker in a similar situation has said "well, since your savings cover these 0% CC debts, we'll just ignore them on your application"

I should add that the poster of those comments was the applicant, not the broker.

Sounds a bit dodgy.

However, only counting the debt and not the savings doesn't sound fair either

Nyquist

Hi guys

thanks for all the replies. good news is that i'm arranging a new mortgage but with the same lender. that way no financial questions will be asked and i can keep on stoozing. but now i know about this i'm going to clear up all my stoozing in good time before my 2 year motrgage deal comes up again.

Cheers to Yorkshireboy nrsql AndyRat Al Mac and Poordave