Mortgage Guidance

sazandy25

Would a lender look more favorable to someone with £3000 cash in a current account (earning interest) & £3000 on a 0% card
OR
£200-£300 in a bank & NO debt on a card?

Looking at upgrading our first home & looking at any guidance.

Thanks in advance

ACG

Very difficult to answer without knowing more. Some lenders would not mind either way. Assuming it stacks up from an affordability point of view I would say it probably does not matter but if I had to give an answer one way or the other I would say no debt.

sazandy25

That is what I was thinking.

Just trying to work out if there is anything we can do.

We are over paying by £50 a month so that looks good in our favor.

Just found it really annoying when we remortgaged (within the last 2 years) the best deal found by a broker said on our finances the most we could afford was £475 per month & increasing the mortgage term by 3 years EVEN though for the past 8 years we had been paying £534.
The affordability checks seem very over the top, how can they have said we can't afford what we have been paying??

ACG

Theyve not, their affordability checks are based on what if rates go to around 7% - not what it is today.

Thrugelmir

sazandy25 wrote: »

Would a lender look more favorable to someone with £3000 cash in a current account (earning interest) & £3000 on a 0% card

Savings can soon be spent. Takes seconds. Whereas debt can take years to repay.

sultanabran

Another way to look at it is when you do a DiP, do they ask how much you have in your current account? They didn't for me. They did however ask what the balance of my credit cards was.

sazandy25

very true, thanks for your advice.