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Preparing to move house
DebtFree2012
Posts: 3,573 Forumite
Once I am debt free we are looking to move house. I'm working hard to get rid of the debt and it will be gone in two years (opposed to 5 which was the original time scale). We will be looking for a LTV for 80%, hopefully 75% by the time it comes round. 2 wages, 2 kids. Debt is mine, DH has none, nor will he.
However my questions are around how I will be viewed by the mortgage company.
By then I will have no debt - they will obviously be able to see that I have had and have paid it off. I'm not late with payments etc. We're on the electoral roll.
Do I close all CC's so we have no available credit?
We have no overdrafts so again, no available credit.
Is that (in their eyes) a good thing? Maybe there is no black or white answer.
Our lender will more than likely be Halifax if that makes any difference.
Anything else I can be doing to make life easier when the time comes? Ie getting statments in order (keep spending down for x or y?). I'm not worried, I just want to be prepared as it's a long time coming!
TIA.
However my questions are around how I will be viewed by the mortgage company.
By then I will have no debt - they will obviously be able to see that I have had and have paid it off. I'm not late with payments etc. We're on the electoral roll.
Do I close all CC's so we have no available credit?
We have no overdrafts so again, no available credit.
Is that (in their eyes) a good thing? Maybe there is no black or white answer.
Our lender will more than likely be Halifax if that makes any difference.
Anything else I can be doing to make life easier when the time comes? Ie getting statments in order (keep spending down for x or y?). I'm not worried, I just want to be prepared as it's a long time coming!
TIA.
Debt - CCV £3792
CCB £1383 (took a hit for a holiday)
Loan 1 £1787
Loan 2 £1683
Total £8601 Was £39302
CCB £1383 (took a hit for a holiday)
Loan 1 £1787
Loan 2 £1683
Total £8601 Was £39302
0
Comments
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Pay everything on time and use a credit card for everyday expenses, paying off the full balance at the end of each month.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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Thanks for the reply.
Credit limit on said card, does it matter? Keep it low? It's currently 10kDebt - CCV £3792
CCB £1383 (took a hit for a holiday)
Loan 1 £1787
Loan 2 £1683
Total £8601 Was £393020 -
Only YBS Group is remotely interested in unused/available credit.
Most lenders don't take much notice.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 -
Much appreciated.Debt - CCV £3792
CCB £1383 (took a hit for a holiday)
Loan 1 £1787
Loan 2 £1683
Total £8601 Was £393020 -
Close any unused accounts and only retain those that you intend using going forward.0
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