Moving home - credit rating

Rachel24

Hi

Me and my husband are hoping to move in 18 months to a bigger home. My question is at the moment my mortgage is with nationwide. We've managed to renew our mortgage with nationwide as they don't do any searches but we plan on moving to a bigger property in the future.
I have a lot of debt. Credit cards, 2 loans and next account. I've been really stupid and I'm currently paying my debt off. On my credit score I have no missed payments but I do have high credit utilisation and my credit applications is high. If I continue to reduce my debt significantly would this mean I would have a better chance at getting a bigger mortgage? I'm just concerned I wouldn't be approved a bigger mortgage because of my credit utalisation. My mortgage is sitting at 93k we paid 115k for it and it's worth 135k.

Thanks

Jaglad111

It all comes down to the figures. If you earn 100k p.a with no children then all's good, if you earn 15k with muliple dependants and high debt levels it would be a no.

Could you please give household income, total debt, how many dependants you have, price of new property (estimate). With those figures a broker on here should be able to assist you further.

Rachel24

Thanks for your response jaglad.

Joint household income of £50k. House price we are looking at is £180k, like I say we'd have approximately 40/45k to put down on the house.

Debts at the moment of 18k, but by a year we plan to have this below 10k. I don't have children but my other half has 2 children who we have part time. One will be 18 by the time we move no idea if this makes a difference. Debt is in my name not his.

Jaglad111

Looking at it you will be fine. It depends on finer details such as whether that 50k is salary or made up from various elements such as commission, O/T, irregular hours, contractor work etc etc.

Hopefully a broker will pop along and give you a far more definitive response but i suspect if you stick with your plan you will be fine. Having debt just reduces affordability. With a good deposit and reasonable income I wouldn't be excessively panicking.

ACG

Having debt in itself is not a problem in the main, there are exceptions to this but normally only if you are lending a lot compared to your income.

I agree with Jaglad in that you should be fine, it will come down to the finer details but I would not be overly concerned.

Rachel24

Thank you both for your responses.
The sad thing is my debt has been spent on nothing!
We both are in full time employment and our wages are based on fixed income. I do get more than that if I get overtime which I do every year but have not included that.
Just wish I hadn't been so stupid but I am rectifying that.
Thanks again

Iulia

Rachel24 wrote: »

Debts at the moment of 18k, but by a year we plan to have this below 10k. .

That's £667 per month. Are you sure you have that kind of money each month, to pay off your debts?

Thrugelmir

Debt in itself isn't an issue. As long as there's the income to service it. Which is where the problem starts. Normally when an unexpected financial event occurs. Lenders take the pessimistic view. Whereas borrowers are in the main optimistic of their financial circumstances.

Debt shouldn't dtop you moving house. More a question of how comfortable you are with taking on more debt. Which simply extends the period you'll be paying it off even further. Down to personal choice.