nationwide mortgage & credit card

Salander

Hi all,

I have a save to Buy account with 10K in it. I also have 3K balance on a credit card.

Would I be more likely to get an agreement in priciple by:

A) Paying off my credit card
Putting the 3K into the deposit, making it 13K, but not reducing the card?

Normally I could have thought A, but the Nationwide calculator seems to suggest that the bank would be willing to lend more if I did B!

I am looking for a 5% mortgage on a 200,000 house

Thanks for the advice:D

Thrugelmir

I assume you mean 95% mortgage.

In which case pay the card off. As it may well tip the application to a decline.

kingstreet

The maximum amount you can borrow is determined by your income and expenditure, so repaying a credit card will usually mean a higher maximum mortgage.

However, if the lender takes only 3% of a card balance off your affordability, that may cost you less than the £3k.

For example, a £3k balance may mean £90 a month taken into account. This would see your maximum mortgage reduced by around £4,860.

This will depend on the lender and other issues, such as income level, term, dependents etc.