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Decreasing available credit limits before applying for mortgage

Hello all. I'm going to be applying for a mortgage in about 2 months time. I've got 2 credit cards and an overdraft that I've never used more than about 25% of the available balances.

Should I bring the limits down if i'm not using them? And would this be a positive thing to lenders, as my possibility of indebtedness decreases, or could it be seen as negative as they can't see whether it was me decreasing the limits, or the credit company/bank decreasing my limits?

Applying for a £75,000 mortgage in sole name.
Credit Card 1 limit of £3,000 (no outstanding balance)
Credit Card 2 limit of £3,000 (no outstanding balance)
Overdraft of £4,000 (no outstanding balance)
Income of £30,000

Comments

  • The_Boss
    The_Boss Posts: 5,864 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 22 February 2014 at 6:45PM
    Personally I wouldn't decrease the cards. With no outstanding debt you won't be looked at as a risk with your salary and the value of the mortgage.

    Might consider reducing the overdraft though to £1k.
  • When they search for the mortgage, they would see a credit limit decrease. No difference between the card company doing this and you, so it might look like your limits have been reduced.

    If the mortgage company don't like the amount of credit you gave access to, they can ask you to reduce the limits. That way it's obvious to them you requested it.
    :beer:
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