Credit cards and mortgage application

Mrstvo

We're looking at purchasing a property for 275k we have a deposit of 80k. My wife and myself earn £3100 a month between us. However she has £11,000 on her credit cards with a combined limit of £31,000.

Is this going to cause a major problem on our application. We've had an aip from a lender with was approved. I can't use any of the deposit money to pay off the cards as it is a gift towards a deposit only.

YHM

If this is the only credit you have, you should be fine.

Most lenders just take a % of your credit card balance as an outgoing during the affordability calculation and as long as the rest of it fits, then it'll pass

JustAnotherSaver

I was going to make my own thread similar to this but if you don't mind i suppose i should just attach on to it?

We've already got our house & our mortgage renewal date will be around this time next year as our 5year fixed term ends.

I was basically just wondering how credit cards (if at all) will affect the renewal?

We have no debt in the sense we're not in any negative balance on any account.
We have:
* Sainsbury's card with around £3.5k outstanding balance of a £6k total
* Clydesdale for both myself and my wife (so 2 cards) which have around £500-£600 outstanding on each of i forget the total allowance (around £2k i think).
* A recently opened HSBC credit card with £1k limit and £0 spent.


Have not missed any payments on anything & have the money in savings to clear all balances today if i had to. The plan was to clear all balances the week or 2 before the 0% on purchases offer ends on each account.


So will this go against me or for me when renewing mortgage, or wont it make a difference?

And to take it a bit further, what about current account overdrafts? I don't use them so will they make a difference? Go for or against?

mailmannz

Mrstvo wrote: »

We're looking at purchasing a property for 275k we have a deposit of 80k. My wife and myself earn £3100 a month between us. However she has £11,000 on her credit cards with a combined limit of £31,000.

Is this going to cause a major problem on our application. We've had an aip from a lender with was approved. I can't use any of the deposit money to pay off the cards as it is a gift towards a deposit only.

Why would you not pay off the credit cards? and go with a £69k deposit which is still a pretty damned good amount to start with?

Regards

Mailman