Stoozing, Shuffling and Mortgage Appliction

[Deleted User]

Hello,

I am currently stoozing £10k on 0% credit cards, and doing a shuffle betweeen 3 current acounts to attract the best intrest rates on my stoozed money. I also have a help to buy ISA I am paying £200/mo into.

The resaon I am doing all this is to gain as large a deposit as possible to buy my first house in 18 months when I move jobs back to t'north.

What I was wondering, is if all the movements of money and different pots and large "debt" on credit cards will negativly affect my mortgage application? If it is bad, how long before I plan to apply for a mortgage should I stop stoozing and shuffling so my credit file looks "normal"?

Thanks for any help, :beer:

G.

glosoli

Generally lenders can take anywhere between 2.5% to 5% of any credit card balance as an expenditure, so as you can see, a £250 to £500 expenditure is not an insignificant sum to be included within your affordability expenditure and may contribute to being able to borrow less than you were hoping for (or perhaps not, if your income is high relative to the amount that you were looking to borrow).

In terms of the level of debt itself, again it is a relative question. If your income is £17,000 per annum, then £10,000 looks worse than if your income was £40,000. Some lenders may factor in whether your level of unsecured debt is high or not relative to your income.

In regards to when to stop juggling debt between one agreement to another, generally the data that lenders pull back from the report can be between 4 to 8 weeks old, therefore the last thing you want is to be in a position where you have two cards showing a balance, when in actual fact one was used to pay off another. To be on the safe side, I would probably recommend a period of three months prior to your application to ensure this does not happen.