We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Does stoozing affect mortgage?

Options
I am on a mortgage and started stoozing
At the end of the current two years term I am planning to apply for another 2 year fixed rate.
Will the stoozing (paying minimum) affect the decision?

Comments

  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
    Options
    It would probably be beneficial to repay the credit card balance beore making the re-mortgage application. You can always resume stoozing after.
  • splatt30
    splatt30 Posts: 339 Forumite
    First Anniversary First Post Combo Breaker
    Options
    When I was discussing house move mortgage earlier in the year the £10k stooze affected the amount I could borrow by £70k, so in my experience, yes. I had to clear away the stooze, and I did this 4 months before applying for the mortgage.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Name Dropper First Post First Anniversary
    Options
    I agree - to you it is stoozing - to a lender it is a debt outstanding.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    Combo Breaker First Post
    Options
    vb3d wrote: »
    I am on a mortgage and started stoozing
    At the end of the current two years term I am planning to apply for another 2 year fixed rate.
    Will the stoozing (paying minimum) affect the decision?

    Yes and no. If you're staying with the same lender in most cases it won't make any difference.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • vb3d
    vb3d Posts: 100 Forumite
    First Anniversary First Post Combo Breaker
    Options
    The product I am considering is with the same lender.
    If I get rejected, will I have a chance to ask why and answer their question about the credit?
    If I get this chance, can I show bank statements of my savings to ensure the lender of my financials? Will this make a difference?
    Not sure what to say if they ask me why don't I clear the credit, surely not stoozing :p
  • Lemonsqueezer78
    Options
    It is actually somewhat rare for a lender to reveal exactly why they are declining to lend, however of all the types of credit you could apply for, a mortgage application is probably the most likely type to result in a more detailed explanation if you push gently. The presence of a broker can also sometimes mean you get a more accurate reply as to why an application is declined. However you mileage may vary and you may not get a clear response, if they are feeling evasive....
  • daniel86_2
    daniel86_2 Posts: 49 Forumite
    Options
    It possibly could, a debt is a debt whatever reason it exists, and any mortgage application would take this into account with many other factors they use to deem if your application is successful.
  • engineer_amy
    engineer_amy Posts: 803 Forumite
    I've been Money Tipped!
    Options
    If you are staying with the same lender and not making any material change to the mortgage i.e. amount borrowed or length of term, then the lender may not do a credit check to simply put you on a new deal.
    If this is your situation then a quick call to the mortgage centre of your bank/lender should give you a more definitive answer as to whether they will take your credit card balance into account at the time of applying for the deal.
    Mortgage = [STRIKE]£113,495 (May 2009)[/STRIKE] £67462.74 Jun 2019
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 12 Election 2024: The MSE Leaders' Debate
  • 344.2K Banking & Borrowing
  • 250.4K Reduce Debt & Boost Income
  • 450.1K Spending & Discounts
  • 236.3K Work, Benefits & Business
  • 609.7K Mortgages, Homes & Bills
  • 173.6K Life & Family
  • 248.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards