📨 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!

Open Credit when applying for a mortgage

Hi everyone,

Hoping someone can help me!

My husband and i are about to apply for a joint mortgage with my husband already having a mortgage and me being a first time buyer (he own our house and we are selling to purchase jointly) hope that makes sense

my question is, we have around 10-15 credit accounts open, in various forms of credit cards, store cards and catalogues, which total in excess of £70k open credit. the collective balance between us of 'debt' on these credit accounts is a mere, £172 which we will have paid off payday (we never have balances outstanding on the accounts)

so does this affect our mortgage application, the fact we have in excess of £70k of 'open disposable credit' at this very moment?

the mortgage amount we are applying for is £228k which is well within our salarys etc so thats not a problem, but should we close these open accounts prior to the application?
Current Mortgage balance - £363,785.35/£420,000 (highest point Oct 2022).

Comments

  • kingstreet
    kingstreet Posts: 39,309 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Some lenders don't like it. Others do not have a problem.

    You'll need to ask the lender you plan to use.
    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.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    If you have accounts that you have no need of. No harm in closing them.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.6K Work, Benefits & Business
  • 600K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.