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Clearing Debt Before Mortgage Application
SharkBite
Posts: 40 Forumite
Hello,
I'm in a position where I have a decent deposit (40%) to buy a house with my wife this year. I'm looking to clear the majority of our debts before we submit an application. (Paying them off early)
Is this wise?
It'll free up around £440 per month and after clearing my CC the balance will be £0.
We are leaving a car PCP agreement untouched and I'll be using the CC for day to day spends such as groceries and fuel, which I will clear monthly.
I know mortgages these days are based more on affordability and monthly budgets etc. so I'm assuming paying off most of my debts and freeing up the monthly cash is a better than continuing with the debt?
I have a decent credit score with the only negatives (apparently) being my CC utilisation is high.
All advice is greatly appreciated.
Max
I'm in a position where I have a decent deposit (40%) to buy a house with my wife this year. I'm looking to clear the majority of our debts before we submit an application. (Paying them off early)
Is this wise?
It'll free up around £440 per month and after clearing my CC the balance will be £0.
We are leaving a car PCP agreement untouched and I'll be using the CC for day to day spends such as groceries and fuel, which I will clear monthly.
I know mortgages these days are based more on affordability and monthly budgets etc. so I'm assuming paying off most of my debts and freeing up the monthly cash is a better than continuing with the debt?
I have a decent credit score with the only negatives (apparently) being my CC utilisation is high.
All advice is greatly appreciated.
Max
0
Comments
-
The cleaner the application, the easier it will be to get approved.
If you can get rid of unsecured, then do itI am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice0
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