Does ratio of income to available credit affect credit rating for a mortgage?

MaryFaerie

1.1 I'm planning a mortgage application next year. I have a low income (£10,000) and currently have a 20% of that available on my single credit card. This card isn't used much, always paid in full every month and I've had it years so I think keeping it will be in my favour. I have no other credit available (no overdrafts, store cards etc.) and savings 50% higher than my annual income. Will my amount of available credit go against me for a mortgage? Should I reduce it?
(Ideally I'd leave it as it is for the odd issue e.g. car hire abroad needs that figure for security.)

My credit report is good to excellent. Never a missed payment on anything. Ever. Never a charge. No CCJs. etc.

1.2 Will my available credit also affect a credit card application? Is there a way to calculate how much pre-existing available credit would harm or put in good stead a successful new application? I was turned down for a Santander 123... although I'm aware self employment, not being a home owner only at current address 1 year, and likely not making them any money could be factors... but I'm curious could my pre-existing credit have been the biggest factor?

2. I stupidly applied for that 123 card before using the soft check calculator... how long will my credit report be reduced by that check? Wish I hadn't with the mortgage plan my dream. Dang.

Thanks in advance... MoneySavingExpert is my guru

[Deleted User]

It will have more of an impact in other credit card applications than in mortgage apps. Lenders vary, but all will have a guideline as to how much credit they feel you can handle.

Your mortgage application will be more about debt and affordability.

I wouldn't worry about a single credit search and ignore any number the CRAs give you.