Will a recent large one-off spend affect remortgage to another lender?

GreatheadShield

We have recently paid off all debt and now have a decent disposable income each month. However in the last couple of months we have paid for a fairly expensive holiday which has used our disposable income. I've used the credit card to book a few things (such as accommodation) and paid it off immediately so still no debt.

We are hoping to remortgage to one of the 4 or 5 year fixes with nationwide/HSBC. I'm worrying that during the MMR interview it will look as though we are big spenders although this holiday is a one off!

How do lenders view this, several thousand spent on a holiday in the run up to mortgage application?

Outgoings otherwise are very reasonable, no childcare costs, no debt, no sky/big mobile bills, little petrol use. LTV is 50% and mortgage would be 190k on 80k joint salary. We have 3k saved in an emergency fund and are now adding more as holiday is paid for. Thanks for your help!

ACG

Its based on affordability, paying for a holiday on a CC and then paying it off is not really affecting that. They may question it, in which case you can answer the question. I would be very surprised if that alone is a deal breaker.

Thrugelmir

GreatheadShield wrote: »

We have recently paid off all debt

Past history is a factor when profiling applicants. A sudden windfall does not necessarily mean a complete change of behaviour. I.E. the discipline to save and manage money.

pinkteapot

We remortgaged to HSBC a couple of months ago. 48% LTV and borrowing 3x joint salary. We didn't have an interview. Applied online, approved within a week and completion within two weeks (from application). So with a low LTV, they may not even ask you questions.

We were worried about the same thing as we'd moved six months before and had been spending a lot on furniture and other stuff for the house (had no debt at all, but had been spending income instead of saving it). They saw bank statements and didn't seem to mind...

Having said that... HSBC are one of the strictest lenders. They're only interested in people in permanent jobs (and not in a probation period), and in those with a perfect credit history. You said you've recently paid off debts - do you have any late payments or other blemishes on your credit record? If so, suggest speaking to a broker as HSBC will probably be a no-go.

GreatheadShield

Thanks all,
The debt was only a 5k loan which was paid off early over a few months, no windfall. We stopped needing paid childcare in March so that has coincided with paying the loan off to give us decent spare income. No problems with the credit record as far as I know but thanks for reminding me to check.
Hopefully should be ok then!