Getting a new credit card just before mortgage application

Boome

Hi,

I was wondering if anyone could answer my question in relation to mortgages and credit cards.

We are in the process of saving for a deposit for a mortgage and should be there in approx 4-5 months. I was looking at purchasing something and the cheapest way for me is to purchase on a 0% purchases credit card.

My question is, would it effect my mortgage offer if I take out a credit card now and apply for a mortgage in a couple of months? I.e. Would my credit rating be affected on such a way that the mortgae rate would be worse?

Sorry if this doesn't make sense but I am new to mortgages and don't really know much about them, except what I have read on this website!

Any advise would be appreciated.

Many thanks in advance

Matt

ACG

4-5 months in advance is unlikely to be a deal breaker, but it is impossible for anyone to say for sure without knowing your circumstances.

black_wings

As mentioned above it will depend on your circumstances but from experience I opened a new credit card and closed an old one down - then a month later submitted a mortgage application and it was approved without any problems so personally I don't think opening a new card 4/5 months prior to application will cause harm.
But of course taking on new debt on the credit card will reduce your affordability - so that is probably the main thing to watch out for.

Boome

Thanks both.

I appreciate the feedback