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Credit Card Debt and Mortgage application
iwblue
Posts: 122 Forumite
Hi, I have approx £13000 on CC at 0%, with a similar amount earning interest in various accounts. However I;m thinking of applying for a mortgage shortly, I own my own home so will be taking a new mortgage. Is it better I pay off my CC debt before applying, will it go against me, or is ok to hold on to it until I have to repay it. My LTV will be 30%?
Many thanks
Many thanks
0
Comments
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Some lenders will tax your affordability by 3% of the balance, others by 5%. If it remains affordable, you shouldn't have a problem unless you have a low income and the balance is over 40% of what you earn gross each year.
It will always depend on your chosen lender. Suggest you ask.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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