Credit Card Debt

ronny147

Have just had an emergency and had to spend on my cc which is 5k now. ( only debt)

How much of a problem would this be to a lender. Do people apply for mortgages with cc debt often?

We earn 100k between us as a joint income and manage the debt down by paying 500 off a month

marksoton

ronny147 wrote: »

Have just had an emergency and had to spend on my cc which is 5k now. ( only debt)

How much of a problem would this be to a lender. Do people apply for mortgages with cc debt often?

We earn 100k between us as a joint income and manage the debt down by paying 500 off a month

It'll be taken into consideration for affordability.

Not being funny but if you have an income of £100K but you need to load a CC with £5K and you can only pay £500 PM you're spending beyond your means.

ronny147

I didnt say we could only afford 500 to pay it off. We could afford a lot more but we have to move early next year and we want to have enough to pay to go into rented - deposit, 2 months rent fees etc.

Shortly after going into rented we will look to buy and my question was about how banks would look at this debt.

Hopefully will nearly have paid it off by then anyway

marksoton

ronny147 wrote: »

Shortly after going into rented we will look to buy and my question was about how banks would look at this debt.

That will vary between lenders. Consulting a decent whole of market broker will help.

Thrugelmir

Use your saved deposit money to clear the debt. If I were a lender I'd be wondering why.

Cakeguts

ronny147 wrote: »

Have just had an emergency and had to spend on my cc which is 5k now. ( only debt)

How much of a problem would this be to a lender. Do people apply for mortgages with cc debt often?

We earn 100k between us as a joint income and manage the debt down by paying 500 off a month

I am sorry but this doesn't make sense. If you are thinking of buying a house why are you still having to use a credit card for emergencies? People who are serious about buying a house are savers. They don't have emergencies that need to be paid for on a credit card they have a lot of savings that cover all emergencies because this is what they will need to do when they own their home.

Turn this round and look at it from the lenders point of view. Would you say that you are a good risk? You both have good salaries but have to use a credit card to pay for emergencies because you can't save enough to pay for them? Would you lend any money to someone like this who can't budget? If you own a property you have to have enough spare cash to pay the mortgage if you lose your job.

Pay the debt off before you apply for a mortgage. Don't buy anything using finance.

glentoran99

Cakeguts wrote: »

I am sorry but this doesn't make sense. If you are thinking of buying a house why are you still having to use a credit card for emergencies? People who are serious about buying a house are savers. They don't have emergencies that need to be paid for on a credit card they have a lot of savings that cover all emergencies because this is what they will need to do when they own their home.

Turn this round and look at it from the lenders point of view. Would you say that you are a good risk? You both have good salaries but have to use a credit card to pay for emergencies because you can't save enough to pay for them? Would you lend any money to someone like this who can't budget? If you own a property you have to have enough spare cash to pay the mortgage if you lose your job.

Pay the debt off before you apply for a mortgage. Don't buy anything using finance.

Do they? News to me, I would imagine there are few people can afford a mortgage if they don't have a job

ronny147

We have to take a hit on our sale and this already eats into our equity money

-taff

I had to agree to pay mine off with my sale profits.

ronny147

Thanks all

bouicca21

Unless the cc is interest free, the sensible thing would be to pay it off.