Mortgage port application- credit card limit query

munstermonkey

Hi all,

I am hopefully going to take over my flatmates share of the mortgage in the next 2 months.

I have a current credit card limit (between 3 cards) of £4750. I am going to clear the outstanding balance (approx £4000) in the next 2 weeks.

My query is will having such a large amount of available credit have an effect on my mortgage application?

Am I better off reducing the available credit or does that show up as a search on my credit rating?

Thanks,
M

Thrugelmir

The debt if outstanding may impact affordability. The credit limits themselves will not.

Though if you don't need all 3 cards may be worth cancelling one once the debt has been repaid.

izools

It depends on your income and requested mortgage amount. If the underwriters think you won't be able to afford the mortgage should you max out your cards it may affect your applicaiton. Having said that, a total available credit of £4,750 isn't a massive amount really, unless the mortgage requested is really pushing the maximum available to you on your income.