Too much available credit?

Thrugelmir

ValHaller wrote: »

I think that the 50% of salary rule of thumb relates to the amount you are actually borrowing. For a mortgage application, I would be very surprised if the available credit was actually a problem.

Turn the question around. Why does the borrower require that level of credit availability? Could soon be in financial distress.

shortcrust

The_Boss wrote: »

Ok. Because your level of debt will also be of interest to a mortgage underwriter and they may insist that any debt is repaid with proof prior to approving a mortgage. £2k is obviously a lot more manageable to repay than, say £6k.

Thanks, that's helpful!

The_Boss wrote: »

See, my post was just as useful as CLAPTON's

I actually spent quite a bit of time thinking about that, mainly because of your signature! Both of your posts have now been thanked - I appreciate the input - but at the point when I thanked CLAPTON's post you had asked me a question. I had no idea whether you would reply to my answer or whether your reply would be useful. Given your signature, I honestly thought you might view a premature thanks with some distain.

shortcrust

Thrugelmir wrote: »

Turn the question around. Why does the borrower require that level of credit availability? Could soon be in financial distress.

I think this is what originally got me thinking about whether I had a problem ahead. There is (or was) a good reason - in my mind at least - for having every account I have, but the total available has crept up almost without me realising.

Most people seem to think that a trim would be a good thing so I think that's what I'll do. The catalogs can go, and perhaps also one of the overdrafts. I'd also like to get rid of my Aqua non-reward card, but as this is my oldest credit account I wonder whether closing that might do more harm than good. Hmmm.