Credit Card Mortgage Application

Paul1211

Hi All

Would anyone happen to know how potential lenders look at credit card balances when applying for mortgages?

I show a regular repayment each month, the last couple of months I haven’t paid off to full, but have made a big lump sum payment each month and now it is down to £0 having been paid off in March.

My credit rating is ‘excellent’, with a score of 977/999.

Would this affect my chances of getting a mortgage?

Many thanks

glosoli

No it wouldn't effect it in any way.

They care about late payments, defaults, CCJs etc. If there is a balance showing on Experian they would likely just include a % of it as an expenditure, or it showed as £0 they would likely disregard it entirely.

Paul1211

Great, thank you. My credit balance on Experian is £770 but this should refresh on the 3rd April to £0 so all should be good

Thanks for the advice

kingstreet

Some lenders will take any balance into affordability for the mortgage if it is visible on your credit file in the last three months.

Ensure your file has been fully updated with the £0 balance before you proceed.