Large spend before mortgage

Wintermute

I'm currently in the process or trying to buy a flat, but I didn't time it too well as I'm also about to get a new car which requires a deposit.

The deposit for the car is around the £5k mark, I was originally planning to put this on an interest free credit card and pay it off £500 at a time, but I'm worried about this impacting my chances of a successful application.

I'm thinking about dipping into my savings and pay this cash, I'll still be able to comfortably put down a 15% deposit, but I'd rather have the money in savings if I'm honest.

What's the lesser of two evils from a mortgage approval standpoint, over £5k in interest free credit card debt or £5k less in the bank?

Thrugelmir

Lenders don't know what cash you have in the bank.

Wintermute

Thrugelmir wrote: »

Lenders don't know what cash you have in the bank.

Thanks, I guess that answers that question then, thought it might show up on credit reports.... It's been a long day!

amnblog

Please don't go taking on new credit in the middle of a mortgage application. Surely a new car can wait.

Wintermute

The new car was ordered prior to me starting the process so I'd already committed to it, just haven't paid the deposit yet.

I'm going to pay the £5.5k cash, clear off the credit cards (how much of an impact does unused credit make in reality?) and then repay myself.