First Time Mortgage - Credit Advice

barrowvian

Hi,

I'm at the stage now where I have saved a 20% deposit and have enough extra to cover (from what I've estimated) fee's, stamp duty etc.

My question is with regards to some credit that I have. I have a credit card, a car hire agreement and a student loan.

The credit card isn't an issue as it's only got a small amount on and its 0% interest so I've just been gradually paying it off. The car hire agreement runs out in March and the student loan should be paid off by July. Do any of these make a big impact on the likelihood of me being accepted for a mortgage?

For example, if I was to pay them all off and have nothing outstanding would I look more appealing to a lender? Or would they be able to see that this credit isn't causing me any kind of financial hardship and I'd still be able to pay off mortgage repayments?

I'm just looking for a bit of advise on what route people would recommend I'd take; stay as I am and just pay it when it's due, or just pay it all off and then apply for the mortgage?

Thank you.

thegfb

They will likely take the current commitments into account when assessing the affordability of the mortgage, compared to your income

ch3101

If you wait another year until everything is paid off, you'll be able to borrow more.

If you imagine you take home 20k a year.

You pay say 200 a month so 2400 a year to car finance.

The lender will assess your affordability based on you earning 17.6k a year.

amnblog

If these loans will be repaid in the next 12 months many lenders will ignore them.