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Clearing debts for mortgage application. What to clear first
tarab1986
Posts: 59 Forumite
Hi everyone. I have worked out I can clear my debt by the end of May and my partner and I then plan to apply for a mortgage. I have a £2000 overdraft and £3000 on a credit card. I know the normal advice is to clear the most expensive debt first (credit card) does this still stand when considering mortgages or am I better to clear the overdraft first and stay out of it to demonstrate I can live within my means whilst clearing the debt on the credit card?
Thanks
Thanks
0
Comments
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Clear the most expensive item first.
The order in which you pay things off will not matter to a future mortgage application.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
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