Credit card debt and re-mortgage question

mustachio

I am in about 6k of credit card debt and have about 2k a loan to pay. My credit history is very good and I have never missed any payments.
My partner has no real debt aside from 2k loan.

How concerned should I be in regard to re-mortgage? Are they going to get precise amounts that I owe where from a hard credit check?

glosoli

Bit more context required.

It is impossible to say without further information regarding your income, mortgage balance, house value, etc.

£10,000 debt might not be much if you are on £60,000 a year but a lot if you are on £15,000.

mustachio

Somewhere in the middle of that lol

I am worried because it is my first ever remortgage and I know that lenders can be risk averse.

glosoli

Without actual information then no-one can really say.

In regards to your second point, yes they will see what you owe when they do a credit search on you as per the balances visible on your credit report.

Thrugelmir

mustachio wrote: »

I am in about 6k of credit card debt and have about 2k a loan to pay. My credit history is very good and I have never missed any payments.
My partner has no real debt aside from 2k loan.

As are most peoples until something happens in your life to change the situation. Sickness, redundancy, unexpected kids, relationship breakdown, unexpected car repair bill etc etc. Lenders aren't simply reviewing your history. They are profiling you as potential borrowers and assessing the likelihood of you defaulting. Mitigating the risk is the lenders aim.

When making the mortgage application you'll need to declare the amount you owe at that time.

csgohan4

your credit history isn't good when your 10k in debt combined


hit the debt free wannabee forums to see about reducing your debt


any debt will hit your affordability when you remortgage


you could try customer retention products online if your lender offers this so you don't need a credit check

kingstreet

mustachio wrote: »

I am in about 6k of credit card debt and have about 2k a loan to pay. My credit history is very good and I have never missed any payments.
My partner has no real debt aside from 2k loan.

How concerned should I be in regard to re-mortgage? Are they going to get precise amounts that I owe where from a hard credit check?

Lenders use the monthly equivalent values, not what you owe.

Typically, card debt sees 5% of the balance used to reduce your mortgage borrowing power and similarly this happens for monthly loan payments. If you have 2 x £200 loans and £6k of card debt, your borrowing power is being reduced by £700 a month. If you take each £7 of that as the cost of £1,000 of mortgage borrowing, your affordability could be affected by as much as £100,000.

kingstreet

Look for the online affordability calculator(s) of the lender(s) you are considering.

Enter your information and see what amount is considered affordable. Take out your debt and see what you would have been offered without it.

Don't forget your existing lender may offer you a customer retention product with no status, affordability or criteria checks.

mustachio

kingstreet wrote: »

Don't forget your existing lender may offer you a customer retention product with no status, affordability or criteria checks.

What are the chances of no affordibility checks with Halifax my current provider?

Thrugelmir

mustachio wrote: »

What are the chances of no affordibility checks with Halifax my current provider?

Then it's not a remortgage. Simply a product switch. To avoid any checks use the online option to select a new product. Once advisors are involved. To cover their own backsides lenders will normally perform affordability checks. As they themselves could get into trouble if they misadvised you. A lesson learnt from the PPI era.