Mortgage application - credit card debt

liz09

Hi all,

Just putting a mortgage application in with Metro bank having had it approved in principle about 6 weeks ago. Unfortunately the broker, didn't look at the spreadsheet of credit card debts I supplied to him and today he spots it and says we could have an issue! My husband and I have £23k of outstanding debt, all on 0% balance transfers. Until an hour ago we had £100k of available credit. I have just phoned up all credit card companies and reduced this to £40k as the mortgage advisor said we needed to.

My issue is that obviously they are going to run a credit check and obviously see we did have £100k of credit available. If the mortgage advisor caveats in to say we've reduced all limits, is this ok and a typical solution to the issue? I've resupplied a spreadsheet with revised credit limits in as of now.

I really wish the mortgage advisor had raised it 6 weeks ago as I would have had a small chance of the credit file accurately reflecting the changes, but can't do much about that now.

Any experience in this issue would be much appreciated.

I am extremely worried about it all

amnblog

Are you saying you never told the broker, or he never asked if you had £23,000 of credit card debt?

Are you further saying he suggested the you reduce your credit card limits as a solution.

liz09

I told the broker months ago, actually well before the offer in principle. It was when we initially started working together. Unfortunately he didn't seem to look at the excel spreadsheet he supplied for me to fill in.

The debt has obviously changed marginally since I originally completed it due to payments and I'd moved one balance to another card.

liz09

He said I needed to reduce the credit limits. Which I have now done. I'm just very nervous about it all as its not going to accurately affect my credit file.

amnblog

If you had a decision in principle six weeks ago and nothing has changed since I am not sure what the problem is. Even if the cards were left off of the application they should have been pulled up on the credit file by the lender during the initial credit search.

Has the full application been submitted.

liz09

Thanks for your help.

I'm not sure what he's had done. He said he had it unwritten at underwriter level, and told me that that was even better than an offer in principle. He obviously didn't tell them about my credit card debt then. I can't see a mark on my credit file for a search by metro bank.

I guess all i can do is wait and see. The broker has been so elusive throughout the whole process, I guess I'm worrying that he didn't go through the proper process 6 weeks ago when getting the offer (underwriting) originally.

liz09

He asked me today to reduce all my credit limits before he submitted the application. I have now done that.

Thrugelmir

liz09 wrote: »

My husband and I have £23k of outstanding debt, all on 0% balance transfers.(

How much deposit are you proposing to put down on the property?

liz09

We're going for an 80% mortgage. Which I thought was a reasonable, if not massive deposit, my mortgage broker says it's quite low!

nkkingston

Credit card debt is factored into affordability. Different lenders look at it differently in terms of how big an impact is has on your budget. £23k is a lot, and it's really going to depend on your incomes as to how that impacts on your application.

If you told your mortgage broker about your credit card debt and he failed to include it in the application, you may want to have a think about whether you want to continue with him. That's not a small mistake to make. You may even have grounds for a complaint.

chelseablue

The 20% deposit, how much is that in £'s ?


Also if you earn 25k then 23k on cards is a lot, but if you earn 80k maybe not so much of an issue