Impact of available credit on mortgage application

amn_2

How much of an impact does your available credit (not used, just credit card limits) have on mortgage applications? Are we more likely to be refused or have a lower amount offered?

I have been clearing and closing some 0% BT cards lately in preparation for applying for mortgages early next year and tesco have now said they are increasing my limit by 5k. Whilst I think it's useful to have this limit in case of an emergency I don't need it and don't want to impact on any applications so if it will have an impact I will reject the new limit.

Many thanks!

scotty197340

Hi Amn,

This would have no impact whatsoever on what mortgage lenders would lend to you, as you have no outstanding balance with them.

They base their sums on a few things.

1) Your combined gross annual earnings.

2) Your outgoings eg household bills inc council tax etc

3) Any outstanding loans and credit card balances

If you like you can send me an email at [EMAIL="scottward4@me.com"]scottward4@me.com[/EMAIL] and I can work out roughly what you can borrow.

Kind Regards,

Scott

kingstreet

The YBS Group (Yorkshire BS, Chelsea BS and Norwich & Peterborough) does factor-in credit availability and is the only lender that does so publicly. Others may look at it if they see high available credit and you are tight on income/affordability or low scoring.

scotty - please leave it for members to contact you, rather than suggest they do that. You will be accused of touting for business and banned by the site if you continue to do so.

scotty197340

HI Kingstreet, not touting for business as dont have one to tout, just being friendly !

kingstreet

scotty197340 wrote: »

HI Kingstreet, not touting for business as dont have one to tout, just being friendly !

Ok. No probs. Seen others do similar and get banned and wouldn't want that to happen to you, especially if you aren't an advisor.

SG27

Phone up tesco and get then to reduce your limit. You can increase it again after completion. We closed all the cards we weren't using and just kept one each with low limits. Also reduced the OHs overdraft from a ridiculous £950 to a more sensible £50.

Better to be safe than sorry..

amn_2

Thanks for the feedback everyone, I think I will reject the increase just to be on the safe side. Current limit is 5.5k anyway which is on the high side for what we typically use. Only have it to put monthly spends through to get the points and it's cleared every month