credit card debt and mortage app

mandy80

Hi,

What impact does credit card debt have on the ability to secure a mortgage if....

the applicant is within affordability with the CC debt taken into account
They have a good payment history with no late payments


Would a high CC debt of 30K be enough to scupper the application, even if on paper it was affordable and the borrower had a good payment history?


We may have to relocate at some point in next 12 months. We would need to borrow around 170K. I have been onto affordability calculators and with out current debt we can lend up to 250K, which is clearly more than we need. My worry is that when we actually apply the underwriters will see our debt level and automatically turn us down

-taff

Depends on your total affordability.
See a broker.

amnblog

If your unsecured debt is a high proportion of your income it can lead to a decline, even if you meet affordability.

csgohan4

how much deposit do you have? lenders also frown on borrowed deposits.


Hit the debt you have hard, debt wannabee forum is a good bet

erin110

If your income is less than £30k from my experience you will struggle to get a mortgage with a high street lender. Contact a broker.

muhandis

Based on the many threads I've seen on this forum, high cc debt isn't necessarily a deal breaker but ofc this is subject to what your other circumstances are. Different lenders look at cc debt in different ways while assessing your mortgage application.

It is unlikely that anyone here will be able to tell you that you will be ok or not. If I definitely wanted to buy a house in the next 6 months, I would get my £2 statutory credit report, gather all my details and approach a broker to see what they say about my chances.

Good luck.

mandy80 wrote: »

Hi,

What impact does credit card debt have on the ability to secure a mortgage if....

the applicant is within affordability with the CC debt taken into account
They have a good payment history with no late payments


Would a high CC debt of 30K be enough to scupper the application, even if on paper it was affordable and the borrower had a good payment history?


We may have to relocate at some point in next 12 months. We would need to borrow around 170K. I have been onto affordability calculators and with out current debt we can lend up to 250K, which is clearly more than we need. My worry is that when we actually apply the underwriters will see our debt level and automatically turn us down

mandy80

amnblog wrote: »

If your unsecured debt is a high proportion of your income it can lead to a decline, even if you meet affordability.

30K debt against a 75K joint annual income. Quite a lot 10K less than it was last year as I am trying to pay it down quickly.

We take home around £4500 and minimum debt payments are around the £700 mark. It's perfectly manageable at the moment although I know that it's a ridiculous amount of debt.

mandy80

erin110 wrote: »

If your income is less than £30k from my experience you will struggle to get a mortgage with a high street lender. Contact a broker.

We are lucky to have a good income of around 75K (joint)

mandy80

csgohan4 wrote: »

how much deposit do you have? lenders also frown on borrowed deposits.


Hit the debt you have hard, debt wannabee forum is a good bet

We have around 80K of equity and my other half can also raise 15K if necessary, so 95K We would need to spend around 250k to get a reasonable house.