Credit card debts when applying for mortgage

MDMD

Hi

I am currently in the process of looking for a property (FTB). I have a deposit of £61k (income circa £50k), and ideally would be looking for a 75% mortgage.

By the time I come to apply for a mortgage I will have credit card debts of about £5k (at 0%). Would it be better to pay these off prior to applying?

I will have about £10k of emergency funds I am keeping outside the deposit, plus £5k that I can either use to boost the deposit, or to pay off the credit cards. I realise that a lot of these decisions are very fact specific and each lender is different, but I wondered whether anyone has experience of what lenders have said regarding this in the past?

If I don't pay them off, I will have the proceeds of HSBC and M&S regular savers in April to clear the cards in full.

Thanks in advance

Sedge123

Pay them off. Will make you much more attractive to lenders.

ViolaLass

Ask a broker.

ExpertAdvice

Credit card debt is generally calculated at 5% by the lenders for affordability purposes. Therefore, it would reduce the affordability but figure would vary with lenders.

If you key in the figures in the affordability calculators and you are able to borrow sufficient amount with £5k credit card balance, you don't need to pay it off.