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Which balance availability looks better on mortgage application?
shamac
Posts: 415 Forumite
in Credit cards
Have 2 c/c s, Virgin which has a £12,100 limit and Post office which has a £6k limit, Virgin has nil balance and PO has £250-which will clear next month . Will be applying for mortgage in next year.
Had intended closing Virgin card and reducing limit on PO to £1k-to use for hire cars/emergencies. However, if we have a balance on the PO card with such a small limit will this flag up as being a high % of available credit used-how does this weigh against us having a very large amount of available (if unused) credit? Thanks.
Had intended closing Virgin card and reducing limit on PO to £1k-to use for hire cars/emergencies. However, if we have a balance on the PO card with such a small limit will this flag up as being a high % of available credit used-how does this weigh against us having a very large amount of available (if unused) credit? Thanks.
0
Comments
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In my experience, mortgage lenders are not concerned with how much you 'could' borrow (ie available credit)...only how much you 'have' borrowed (ie used credit aka debt, and it's servicing costs!).0
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