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Affordability with cc debts
sunshine900
Posts: 25 Forumite
Hello
My partner & I were wondering how cc debt affects the amount we can borrow to remortgage & move home.
We have 50k equity in our house & a combined salary of 45k. We have 10k cc debt & a car on pcp.
Do lenders take the total debt off what they will lend you or the amount of minimum payments? The cc debt is on 0% at the moment
tia
My partner & I were wondering how cc debt affects the amount we can borrow to remortgage & move home.
We have 50k equity in our house & a combined salary of 45k. We have 10k cc debt & a car on pcp.
Do lenders take the total debt off what they will lend you or the amount of minimum payments? The cc debt is on 0% at the moment
tia
0
Comments
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Credit cards lenders usually use around 3% of the balance as a monthly commitment for affordability.
Loans/PCP/Leases will be the monthly repayments.
Have a play around on some affordabiltiy calculators or speak to a broker.
You might find having £10k reduces your maximum mortgage by say £30k but having £5k does not reduce the maximum at all. It is just a case of playing around on the calculators and seeing what works best.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, 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 advice.0 -
thank you, will do0
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We have £9,000 on credit cards no other debts and a income of 60k it didn’t majorly affect the amount we could borrow, we’ve got a good broker who found us a really good fixed rate0
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