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Paying off CC before mortgage application
Moonraker71
Posts: 190 Forumite
Hi there, just after some advice really.
I'm hopefully going to be moving soon, porting my current mortgage and raising some extra borrowing on top.
I have an outstanding credit card debt of £5k (interest free) and ideally I'd like to pay this off beforehand, but can only afford to chip away at it by around £200 per month at the mo. I don't have any savings except for £5.5k in an ISA, but I don't consider this as 'savings' in the normal sense because I'm self-employed and this is my only buffer if my work situation ever gets dicey, and even that's far lower than I'd like it to be.
Should I use this money to pay off my CC? It would leave me feeling exceptionally vulnerable, but on the other hand I worry that a large CC debt like that might not look good to my lender. I do pay it off by much more than £200 p/mth whenever I can, if I have a good month for eg. But still likely to take another 1-2 yrs to clear at this rate.
Be interested to hear your views - thanks.
I'm hopefully going to be moving soon, porting my current mortgage and raising some extra borrowing on top.
I have an outstanding credit card debt of £5k (interest free) and ideally I'd like to pay this off beforehand, but can only afford to chip away at it by around £200 per month at the mo. I don't have any savings except for £5.5k in an ISA, but I don't consider this as 'savings' in the normal sense because I'm self-employed and this is my only buffer if my work situation ever gets dicey, and even that's far lower than I'd like it to be.
Should I use this money to pay off my CC? It would leave me feeling exceptionally vulnerable, but on the other hand I worry that a large CC debt like that might not look good to my lender. I do pay it off by much more than £200 p/mth whenever I can, if I have a good month for eg. But still likely to take another 1-2 yrs to clear at this rate.
Be interested to hear your views - thanks.
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