Quick Question

Lydia42

Hi
Just a quick one. We have 4 CC and an over draft. Our current mortgage is up for renewal on 31st January. I'm not looking to consolidate, but want to get a better deal. We've just cleared a Barclaycard this month leaving all debts over 3 CC (0%) and the overdraft. Rough total of debt is in my signature. Is it better for our credit profile if we close the empty Barclaycard now it's clear or hold onto it without using it so it shows as available credit but not in use? Just wondering if my actions will affect our remortgaging hopes. We've never made any late payments and pay slightly more than the min on all cards each month, except the Barclaycard which we were focusing on clearing with all available funds. Our focus will now shift to the next CC in line for clearing.
TIA

BabyStepper

It might be better to keep it open and showing as available credit. If the mortgage lender is worried by the amount of available credit it would be very easy to reduce it. If, on the other hand, you close it down and they get worried by the high usage of available credit, that's harder to fix as you can't apply for more any time near a mortgage application.

Just a thought, hopefully someone much more informed than me will be along in a minute to help!

Just_Di

Lydia42 wrote: »

Our current mortgage is up for renewal on 31st January. I'm not looking to consolidate, but want to get a better deal.

Do you mean the fixed term of your mortgage expires on 31st January so your loan may move to a (higher) variable rate etc?

Sometimes (not guaranteed) a current lender will only carry out internal credit scoring when the customer is seeking to switch to a better rate/deal. Check that first before making the application.

A little more information about the mortgage would be helpful in case there are other options which would be more appropriate for your fiancial circumstances.

Di

-taff

If you are just planning on staying with your current mortgage company they don't tend to do a credit check.
If you are thinking about checking out other companies, they will do an affordability check, so the outcome willdepend on what your current outoings are and yourr CC debt will affect that.

fatrab

Are you being charged for the overdraft? If all remaining debt is at 0% I'd focus on the overdraft first and foremost.


I found when re-mortgaging my level of personal debt reduced the amount lenders were willing to lend, not the availability of good rates. Rate (and number of lenders willing to lend) was depicted by my LTV.


Best of luck

FTBuyerGlasgow

Depends, it may have a bad impact on your available credit and average age of your accounts.

The more unused credit and the longer the account has been opened the better.

EDIT: won't matter if you are switching to a new deal with your current provider as they most likely won't do a Credit search.