increasing chances of a morgage...

mstar

hello people

thanks for your time. A quick question i have two CC with a combined limit of 28k. I have used 5k on one card. Does it make a difference me having 2 CC? or should i cancel one to increase my chances of getting a good morgage as i have raised enough deposit.

ANy help much appreciated

Martinslovechild

Mortgage lenders generally look at how much debt you have outstanding on credit cards, in this case £5K, rather than the total amount available to you.

With the £5K, some will subtract this from the amount they're prepared to lend you whilst others will substract a percentage of this.

If you want to maximise your mortgage, you'll need to clear the £5K debt first.

mstar

so there is no point in cancelling my CC cards just clear the debt?

herbiesjp

That is correct - by clearing the debt, it will increase the mortgage amounts available to you