Credit card limits & Mortgage

lhead123

Hi

We're looking to get a mortgage in about 10 years, once we've saved a deposit and I'm back working full time to increase our income (currently a stay-at-home mum with 7yo and 3yo).

We're currently on track to pay off our remaining debt by November this year (and will then start saving for a deposit), and I just got a letter from one of the credit cards increasing my credit limit. When the debt is paid off I'll have available 3 cards with limits of £3900, £3100 and £1250 I'll also have a £2000 overdraft available and a £500 overdraft on the joint account that's never been used.

I'm wondering what's the best strategy long term to enable us to be brilliant candidates for a mortgage when we want one?

How much credit should we use (and pay in full) each month? Should it be on just one card or across all 3? Should I get rid of the £2000 overdraft (left from student days) that we never use?
Also all the cards are in my name right now, should my Husband get a card too? or get him one and cancel one of mine?

I hope someone can help!
x

David_White

Whilst I admire your forward thinking, if you're looking to take out a mortgage in 10 years time I wouldn't stress too much about factors such as credit limits as you could reduce your limits a year or two beforehand if necessary and who knows what lenders will be looking for in a decade?

At this stage I would just stay focused on clearing the debt/building your deposit and ensure all of your bills are paid on time.