Stoozing to add to house deposit

Tragen

I live in the SE of england and I'm keen to buy a house ASAP after my small business has taken off and is doing well.

I'm rapidly building my deposit up after clearing all my debts, but even so I will need a decent deposit to be considered for a mortgage as self employed with a short history.

I'm thinking of stoozing to add 15-20k to my deposit now, and apply for the mortgage in 6 months. (instead of a year, it will save me about 5 or 6 months of saving). With minimum payments of about £50 during the 0% term it seems like a no-brainer to me.

Or am I missing something? will the CC balances negatively affect my mortgage application more than I am counting on?

[Deleted User]

Tragen wrote: »

will the CC balances negatively affect my mortgage application more than I am counting on?

Probably. Have a play with some mortgage calculators to see the impact it could have.

YorkshireBoy

I've no need for a mortgage these days, having cleared mine early via stoozing years ago, but it used to be the case that lenders (certainly YBS did) allowed for 3% minimum payments when calculating affordability. So they'd take around 36% of your debt off your income.

This was before the credit crunch (so they may have tightened up further now), but if they applied the same rule now they'd take around £7K off with your £20K stoozing debt.

So on a 4x multiple this could knock almost £30K off the amount they'd be prepared to lend. When they factor in your short self-employed time it could affect you significantly.

Tragen

That's very good info. Thank you.

I've just used santanders mortgage calc and what you have said above matches what happens when I play with deposit and cc balances.

Thrugelmir

Tragen wrote: »

Or am I missing something? will the CC balances negatively affect my mortgage application more than I am counting on?

Yes. Savings and debt aren't kept in separate buckets.

What you owe forms one factor of what a potential lender will review when you make the application.

nb0825

The lender will see that you owe £15-£20k on your credit file. The only alternative would be for a close family member to stooze the amount on your behalf and then use it as a deposit.

Candyapple

Tragen wrote: »

I live in the SE of england and I'm keen to buy a house ASAP after my small business has taken off and is doing well.

I'm rapidly building my deposit up after clearing all my debts, but even so I will need a decent deposit to be considered for a mortgage as self employed with a short history.

I'm thinking of stoozing to add 15-20k to my deposit now, and apply for the mortgage in 6 months. (instead of a year, it will save me about 5 or 6 months of saving). With minimum payments of about £50 during the 0% term it seems like a no-brainer to me.

Or am I missing something? will the CC balances negatively affect my mortgage application more than I am counting on?

I'm in a similar-ish boat and when I went to a bank recently for the AIP (agreement in principle), when I explained about it being stoozing debt and I could easily repay it, was told that whatever sum I had outstanding debt wise they would deduct that from the mortgage offer (makes sense) and for some lenders they want to see statements of zero balances for any credit card debts.

rockey100

Thanks found this thread useful.