Advice on Halifax credit searches

davidm_3

I have an interest only 2 year fixed rate mortgage for £126K - property is worth £170K so reasonable equity. I have credit card debt all on low life of balance apr's (3.9 - 5.9%) of £22K. I am considering getting some more money on the mortgage to get rid of the credit card debt and then have all the debt in one place and make overpayments to reduce the capital on the mortgage. Before I go to Halifax does anyone know how strict their credit search is? I am about to start a new job and my wife is self employed so we have no proof of income so i wanted some advice before approaching them and possibly leaving a "footprint" on a credit search.

We have a clean credit rating - I have checked this on equifax and have cancelled all our old credit cards and unused bank accounts.

Trebor73

Hello David,

I sort of work in the industry that writes software for these sorts of people (nb. I don't support some of their methods). Therefore I can assure you that the Halifax search is very comprehensive.

It's all down to ratio's - if your ratio's stack up (and everyone's is different) then your in luck - otherwise you will be referred to their underwriters and a decision will be made.

In my opinion (and it's only that) your credit card debt APR is low. If I were you I would make overpayments to the credit card company and not put too much pressure on your mortgage. You might also consider a secured loan but you will struggle to improve on these APR's I think.

Good luck - I hope that helps.

Rob.

regularsaver1

They work on an affordability model - so the credit score does make a difference to what they will lend. As well as if you have children, the term of the mortgage, credit commitments snd actual income.

Generally there is an A pass, a B pass and a C Pass. then an F fail.

For a further advance if you come up to be a C . it is a pass but they will want bank statements and also payslips. A&B do not usually require income, but they may well do sometimes on certain loans to values and if you are short on income.

The further advance fee is £275.
The further advance will offer better interest rates than an secured loan, but you need to be prepared for the potential increase in the cost of borrowing over a longer term, the possible consequences of changing from unsecured to secured ect. You will be asked all these things.