going to be applying for a mortgage in 5 years

themorganator4

Hi guys,


as the title says, myself and my (soon to be) wife are going to be applying for a mortgage in the next 5 years. I will detail my current financial situation:


we both work full time permanent jobs.


Her credit rating is OK (due to a fraud about 4 years ago) but it is improving as she is using credit and paying off on time etc.


my credit rating is good currently, I have 3 credit cards:


1 I use all the time and pay off, in full at the end of the month as I get cashback.


Another one I used for big purchases in the past and paid more than the min payment (I was often charged interest), I just recently paid it off in full, I now no longer use it.


Another card I have is almost maxed out (about £400 away from limit) I pay £75 per month (over the min payment by about £50) this is interest free until 2021 when it will be paid off in full after the wedding. I do not use this card anymore, only pay it off.


I have 2 bank accounts:


1 is my current account I use all the time which has a £500 OD (interest free) I often go into my OD by 20-30 a month but this is paid off with my salary.


another one is an account I rarely use (only when abroad) I have a £1000 OD, I currently have about £1 in this account.


I also have 1 loan which I am paying off currently, this will be paid off by next year/early year after.


I save £500 P/M for the upcoming wedding. After the wedding (next year) I plan to pay off the O/S credit card (mentioned above) I will then have no O/S debts.


I do not know the full financial situation of the other half but she plans to pay off all debts after the wedding in full and will be debt free by next year/early year after.


we will both be debt free (apart from an occasional OD here and there) by middle 2021.


My question is, will all this "playing around" with cards, bank accounts etc have a negative impact on my credit report, I still plan to use my reward card for every day purchases for the foreseeable future.

[Deleted User]

How do you know your ratings are "good" and "OK"?
Do you have access to each lenders internal algorithms for lending?

Don't use the overdrafts - ever - even if it's only £20.

If you're not getting by month by month, stop putting so much into savings to then cover your usual expenditure, or look to cut back on your outgoings altogether.

Carry on using the card as you are so long as it's paid back in full each month.

themorganator4

I use Clearscore (I know this is a basic indication and not the ones banks use)


Thank you for your advice, I will not use my overdraft, I'll look to cut back a bit (which I can do)