Reducing credit before buying a house

Ahastyatom

Hi,
New member and first time poster here, so sorry if this is in the wrong place. My boyfriend and I have decided that we want to buy our first home, so over the last year I've been reducing my debts and saving money. I am now debt free but have £12000 available credit on my credit card and £600 available in overdraft . I don't need this much credit, have never used this much credit, the bank just kept increasing my limit. I've read that applying for new credit before applying for a mortgage can ruin your chances of getting a mortgage, is the same said for reducing credit?


Hasty

HappyMJ

Can be. I wouldn't worry about it. I've currently got over £20,000 in available credit card limits and it's not been a problem getting more credit.

I've also had at one stage nearly £40,000 outstanding debt on credit cards and nothing on the mortgage as it was all stoozed and they still kept approving further credit.

Get a broker to help you they might advise that you close some of the unused accounts.

You'll need some emergency money and having available credit can also be considered a source of emergency money although I know it comes at a cost.