Credit card foot prints and Mortgage application

SpeedSouth

Hi,

Just wondering if folks think this will cause me issues.

I've recently within a month taken out a Tesco CC with £7k limit (what the gave me, not requested). Have the other one still AMEX this was to replace (Want tesco points instead of airmiles now kids have come along is all)

A few months back I opened a Santander 123 account wiht O/D as well.

But I'm now thinking to re-mortgage, given the decent 5 year fixed options. In hindsight I should have done the mortgage first but the rates have just tumbled so has sparked my interest.

Currently the LTV is 40%, and I'd look to take £76k for a 5 year fixed at 2.39 with Santander.

Currently we are on 1.49 above base with HSBC, so it's a calculated risk/gamble that rates will go up some in the next few years.

I've worked out worst case I stand to be £700 worse off if they don't move (£1700 if they got to 0) so I'll take that chance to guarantee some security I think.

Anyone think this will mean my application will be rejected? In the past I have never been deninded credit, and held Nationwide and HSBC mortgages previoulsy but before the tighther laws.

My salary is £40k so the £76k is very affordable, but would look to take this over a 5 year term which mean the lender might think I am stretching myself? Not sure if they consider that or not do they?

Thrugelmir

adam81 wrote: »

Currently the LTV is 40%, and I'd look to take £76k for a 5 year fixed at 2.39 with Santander.

What's the follow on rate at the end of 5 years?

SpeedSouth

Its 4.74% but the point of accepting the 5 year fixed is we would take it over 5 year term (if affordability allowed) so have it paid off in 5 years. Maybe we'd take it over 10 years, invest the surplus for the 5 years and pay off when the fixed term ended.

Previously I've taken the term as 25 years and simply made OP, but in this instance I'd hope a real push could have it clear in 5 years. But this would be a stretch, doable but we would have to be frugal so not sure if the lender will think we are over stretching ourself or not?
Cheers