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CC or loan, which has a worse affect on Mottgage?
Wildgoose84
Posts: 2 Newbie
Hi all,
Am new here... finally have reached an age where I now know how important money matters are. So quick background. Mortgage on current home, have about 90k remaining over 20 years. Looking to move to bigger property and therefore remortgage. Currently have 5.5k in CC which am paying off pretty quickly so no issues in repayment. So my question is, should I swap out this repayment of a CC for a loan in order to improve my mortgage application. I wonder is there any benefit in either my said application? Thanks for any advice!
Am new here... finally have reached an age where I now know how important money matters are. So quick background. Mortgage on current home, have about 90k remaining over 20 years. Looking to move to bigger property and therefore remortgage. Currently have 5.5k in CC which am paying off pretty quickly so no issues in repayment. So my question is, should I swap out this repayment of a CC for a loan in order to improve my mortgage application. I wonder is there any benefit in either my said application? Thanks for any advice!
0
Comments
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There is no real difference in terms of likely acceptance.
It might affect affordability differently lenders usually use 3% of the balance for credit cards as a repayment or your contracted repayments on a loan as the expense.
If affordability is not really a problem then it does not matter which you have.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.1 -
I would not apply for new borrowing just before a mortgage application so I would leave it where it is and continue to pay it off. Affordability is the real issue if the amount you want to borrow is tight on your income.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Thanks for the advice ACG and enthusiasticsaver. I really appreciate you two taking the time to respond. Right, wil blast away at the repayments then!0
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