Think ive made a mistake.....help!!

wigannwuk

Ill keep this as short and simple as i can.
I wish to remortgage after being tied in for 5 years at 5.78%...i was going to wait till november as i have 6 credit searches on file ( from swapping credit cards to better rates & opening a bank account)so at least 2 of them would have dropped off.
My LTV is going to be 74% on the mortgage.
Now my problem is i have £14.5K of credit card debt which as much as its a problem i know once ive remortgaged (saving £400 a month) i can pay this off in a year.
Thinking i was doing the right thing ive lowered some of the credit limits to just over the balance as i know they take how much more you can get into debt as consideration.
I have now since been reading about Debt Utilization ie ..amount of debt to availabilty of credit..and im thinking ive messed up for when i get searched.Are you damned if you do an damned if you dont?? as it seems a paradox...you can have low debt utilization ( which is good) but at the same time be able to rack up mountains of debt (which is bad).
I lowered them last week...should i just apply for the mortgage now before my credit report is updated or am i blowing out of proportion?

ps.....hopefully this is the right board..if not tell me where to post

bottleofred

Hopefully when they look at your credit file, lenders will see that you actually reduced the amount of credit limits etc and were being responsible. Lenders do get nervous when people have used up lots of their available credit (eg if you had a credit card with a £10k limit and owed £8k on it then you'd be using 80% of your available credit), but hopefully will see you were being proactive. I don't see the rates changing too much, so I'd be tempted to apply now, but the final decision is totally and solely up to you.

Good luck whatever you decide

Red

wigannwuk

But in the real world do they look at reducing your limit as good housekeeping?
It's all a bit daft....as much available credit as u can but don't use it