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CC or loan as debt?
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mjn
Posts: 25 Forumite
When applying for a mortgage, does it make a difference if you have £10k of debt on a credit card or a loan? Are lenders more likely to lend if debt is a personal loan? Debt is debt at the end of the day!
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£10k on a card will see affordability affected by about £500 per month, as many lenders take 5% of the balance.
The loan will see the monthly payment deducted, so if it's less than £500 it will do less "damage" to what you can borrow.
Try different lenders' affordability calculators and see for yourself.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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