Increased Credit Card Debt Since Mortgage Offer

Carlsanders

Hello there,

My chest is a little tight with anxiety over our mortgage going through, so hoping to get some reassurance or advice on what to do!

We have had our mortgage offer through the post, which is for 220,000 based on a 90% LTR. But since our initial application, my credit card debt has risen from £900 to £2500, which will appear on my next credit report update about a week before completion. In terms of utilisation, that is a rise from 6% to about 17%

To give you an idea of affordability, our joint income is £6300 per month and the mortgage loan repayments are £960 fixed for 5 years. Our current total outgoings for debt (car, cc, loan) per month is £400 between us, which won't change much as a result of this increase. We only did loan calculators before applying through a broker which I know aren't terribly accurate, but they indicated a maximum of around £460,000 from most lenders. The reason we haven't paid it off (or me, rather) was to raise the deposit for which we were demonstrably saving over 2k a month in over the past year in our savings account.

I'm reassured that we can comfortably afford it, but is there a chance they can withdraw the offer simply based on an increase of debt?

Thanks in advance for any input.

foxy-stoat

Your only options are to pay down the balance or sit and wait.

No one on here will know for sure if the lender will do another credit check, and if the increased borrowing will be shown on that check or if the increased borrowing will make any difference....that is why people advise against increasing borrowing until completion as there is no way of knowing if it will make a difference, only that it could be the difference of getting your mortgage accepted or declined.

csgohan4

Do you have enough money for the solicitors fees and stamp duty e.t.c?

As above you risk mortgage offer withdrawal when they credit you prior to completion which does happen. However that will depend on your affordability and still within this.

No credit before completion is the general advice on here.

Carlsanders

Thanks both,

Yes, we have enough money in the bank to process the sale and pay all fees along with the deposit. No problem there.

If the check is still dependent on affordability when it happens prior to completion I think we'll be fine, as the repayments are basically less than 1/6 of our income. I suppose I'm just worried that the small change in circumstance would warrant a withdrawal and re-analysis from scratch.