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Credit Card Application effect Mortgage?

Hi,
I have a credit card debt of 6k which is to run out next month. Also, I have currently put in an offer for a house but have not yet secured a mortgage. I really need to apply for a new credit card to shift the debt using a cheap balance transfer, but I don't want this to affect my chances of getting the mortgage approved.

What I want to know in a nutshell is, if I apply for a credit card today, will it affect my chances of getting a mortgage which I plan to apply for next week?

Cheers.

Comments

  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    The act of applying for a new credit card should not affect your chances of a mortgage

    The balance on the credit card will however, reduce the amount a lender will look to agree for you. Some lenders will annualise a 5% payment and others 3%

    HTH
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • herbiesjp wrote: »
    The act of applying for a new credit card should not affect your chances of a mortgage

    The balance on the credit card will however, reduce the amount a lender will look to agree for you. Some lenders will annualise a 5% payment and others 3%

    HTH

    Thanks for the help. Just to clarify the above, what does lenders 'annualiseing' mean? Many thanks.
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