Accruing 0% CC debt to Improve Deposit

kriss_boy

We have modest post july wedding savings of around 7K, with no car finance or CC debt. (We own a small property, but we are likely to lose 4/5K on it.)

My question is, would it be advantageous to put all fuel & food on a 0% CC in order to maximise what we can save? To run up 3/4K of debt that we can tart 0% for a year or two.

We are saving an average of £800-1000 a month, and will reach our 15K target around October next year. However this would allow us to arrive at 15K several months earlier.

Will lenders accept that we have a proven track record of saving, and not carrying any debt? We have been told we can get a mortgage of up to 220K, but we are looking at ones around the 120K mark.

Will lenders turn a blind eye to our somewhat subsidised deposit given that the mortgage will be very affordable?

Thrugelmir

kriss_boy wrote: »

Will lenders turn a blind eye to our somewhat subsidised deposit given that the mortgage will be very affordable?

Lenders increasingly will take debt into account when appraising mortgage applications.

Putting savings into one account and debt into another is little more than an illusion. So don't fool yourselves. As lenders won't be.

ACG

If lenders will lend you £220k and your only loking for £120k then affordability wise you appear to be walking it.
I usually try to get people to avoid having debt but going off what you have said, i dont think you will have too much of a problem.

Without knowing more - such as incomes etc its difficult to say but it sounds like it shouldnt be a problem. Speak to a mortgage advisor or try to speak to the underwriters at whichever lender you are thinking of going to.