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Deposit vs 0% credit card debt
rdekanter
Posts: 1 Newbie
Hello,
I was wondering if anyone knows how the banks take credit card debt into account when applying for mortgages.
In short, we are lucky enough to have a decent savings pot and are ready to apply for a mortgage. We also have a wedding coming up and I am trying to work out whether the best plan is to pay for it from the savings or put as much of it as possible onto a long term 0% credit card.
On the one hand, we would have less deposit but no debts, on the other we would have more deposit but also debts. Any ideas which is the best from an application point of view?
Thanks for any input
I was wondering if anyone knows how the banks take credit card debt into account when applying for mortgages.
In short, we are lucky enough to have a decent savings pot and are ready to apply for a mortgage. We also have a wedding coming up and I am trying to work out whether the best plan is to pay for it from the savings or put as much of it as possible onto a long term 0% credit card.
On the one hand, we would have less deposit but no debts, on the other we would have more deposit but also debts. Any ideas which is the best from an application point of view?
Thanks for any input
0
Comments
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They will take your credit card debt into account. This will reduce your affordibilty. Best to have a lower deposit without the debt.0
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Lenders typically take 5% of the balance of a credit card or overdraft into account for mortgage affordability.
Complete your chosen lender's affordability calculator with and without the card balance to see the impact.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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