We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Need some advice please
stress_head_27
Posts: 2 Newbie
Can you help me please I am due to renew my mortgage in May. I have a balance on my credit card of £1630 which I am currently playing off will this have any affect on the renewal.
Your help is much appreciated.
Your help is much appreciated.
0
Comments
-
Very little.
Lenders normally take 3% of the credit balance off your income when assessing affordability.
That would mean around £2,300 being taken off your borrowing power by a 4x salary lender.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Depending on how tight affordability is it could have an impact, but as Kingstreet above mentions, it will have very little impact if you're not looking for a massive income multiple.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.0 -
I should have mentioned, if you are looking for a customer retention product from your existing lender, no further status checks will be undertaken, so it will have no impact at all.
If remortgaging, the new lender will take the cost into account, as I said.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
a little confused. my current fixed rate with my lender is up for renewal and we have approached our brokers. they will be looking for a cheaper alternative to our current mortgage.
Therefore which advice applies, will the balance affect our renewal?0 -
If you are looking to remortgage to a new lender, new status checks will be carried out and the credit card balance will be taken into account.
If you are looking for a customer retention product from your current lender there will be no further checks.
You need to know what your broker is doing. Is he looking to remortgage you, or is he asking your current lender for a new deal? I suspect the former, as very few lenders pay commission to a broker on a customer retention product.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
stress_head_27 wrote: »a little confused. my current fixed rate with my lender is up for renewal
Mortgages aren't renewed. In effect they are are long term loans.
Unlike other loans mortgage lenders allow borrowers to fix into interest rates by selecting a product.
If you did nothing then. You would revert to the lenders SVR or other rate as specified under the terms of your existing contractual agreement.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.1K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards