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Effect of current debt on potential mortgage borrowing
SR1
Posts: 147 Forumite
We are considering moving house and borrowing more money in the next 6-12 months,
We have a loan which will be paid off this time next month(£7500 over 2 years)
We have about £1500 each on 0%bt ( hopefully paid off by January as I can chuck extra money at them when the loan has gone next month)
I am wondering if I did apply whilst I had debts is it just a case of them knocking what I owe off what they are willing to lend me ?
also if I add up available credit on all our cards ( we have the Barclay 0% each and natwest each which we have had for a long time but are paid off monthly if ever used ) we have about 20k available all together! does this effect what they will lend ?
Thanks in advance
We have a loan which will be paid off this time next month(£7500 over 2 years)
We have about £1500 each on 0%bt ( hopefully paid off by January as I can chuck extra money at them when the loan has gone next month)
I am wondering if I did apply whilst I had debts is it just a case of them knocking what I owe off what they are willing to lend me ?
also if I add up available credit on all our cards ( we have the Barclay 0% each and natwest each which we have had for a long time but are paid off monthly if ever used ) we have about 20k available all together! does this effect what they will lend ?
Thanks in advance
0
Comments
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Current debt can affect affordability. Credit limits do not.
Most lenders will ignore unsecured debt to be repaid shortly - the major exception being Santander who factor in current unsecured debt regardless of the borrowers intention.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks. So you don't think the loan would be an issue if it's been paid off ? And you don't think I should decrease my card credit limits ?
Im with woolwich for mortgage0 -
No on both counts.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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