mortgage application with current debt

sleepyk

we have been told by our mortgage advisor to clear our last remaining credit card debt before applying for a mortgage. We have just under £2,000 which is on 0% cards and our total credit limit is over 10,000. If we try and clear this quickly our bank balance will look very unhealthy rather then just a bit low ...is it really that important?

I have put this post up twice (possibly) - computers!

MJP43

I'm not a mortgage professional but based on things I have read on here from the well informed then 2k of debt will impact affordability but should not impact on actually obtaining a mortgage

kingstreet

We're trying to construct the dinosaur from one tooth here but I can't see why having the card debt at the point of application would be that much of an issue.

In most cases, you simply enter it in the right box and note it will be paid off, on or before completion. The it is not included in affordability.

The only lender having a problem with that is Santander where you should ideally have it paid off three months before you apply, so it is no longer visible on your credit file.

Is the advice from an independent broker, or someone in an EA or bank/building society branch?

sleepyk

An independent guy...we started with the one from the estate agent but he didnt seem to be in any hurry to do anything. Unfortunately he had time to make an application to santandere and they declined us due to something on our credit report which we have appealed and has now been suppressed pending an inquiry. Just got that sorted and the new guy throws this in!

Thrugelmir

What LTV are applying for? Is £2k a sizable amount of your deposit.

If it's on a 0% deal sounds as if your debt isn't being repaid just rolled over. Something which is visible to lenders these days. As forms part of the data from the CRA's.

sleepyk

I dont know what an LTV is ! Basically we are up for £365 have a £121 mortgage and want to buy for £410,000. Credit reports are fine. Income £45,000