What is your credit availability to income ratio?

irelavv

I've been doing some reading on this and lots of sources suggest that debt-to-credit or debt-to-income ratio is more important than the actual available credit. However, total available credit is still taken into consideration when applying for a loan/mortgage etc.
I would like to hear people's experiences when applying for an additional credit card, loan or a first mortgage in relation to their already available credit and income. I will most probably apply for a mortgage within this or the next decade so that is why I'm asking.
My salary is quite low: gross profit of £18,000pa and net of just £1,275pm. I have 3 credit cards with a total of £6,000 available credit.
Total monthly credit availability-to-income is 4.7:1, debt-to-income is 0.07:1. That implies that I spend around £100pm on the cards which is only 1.6% of my total available limit.
Paying everything on time and in full, of course. So what is your situation looking like?

MovingForwards

Credit is taken into account with mortgage affordability, lower income means having any debt could result in no mortgage. Having available unused credit is neither here nor there. As you're looking at a mortgage over the next 19 years, no one can say what the criteria will be at that stage.

Credit is also taken into account when applying for more, as is income to service it all.

I earn just over £21k, my total CC available credit is a bit less than yours but over 2 cards and I have a mortgage. 

Don't carry a CC balance, pay it off in full each month after your statement is produced, save as much money as you can each month.

ratechaser

My available (unsecured) credit is about 25% of my total income. Same for Mrs RC (we have 2 primary cards each and are additional cardholders for each other, so just keeping it to individual income versus primary card holdings)

Rarely exceed 10-15% of available credit, and always paid on time.

[Deleted User]

Do remember that what other people get is neither here nor there, someone with a higher ratio than you might get credit and someone with lower might not, it all comes down to what the lender rates you as, so adjusting your profile based on what others have is pointless.

Nebulous2

I've often commented on this. I don't think available credit matters much, if at all. In some ways it could be a positive, as it shows that lenders trust you. 

I've had over my annual salary in available credit for more than 30 years. At times it has been over twice my salary. In fact, thinking about it now - I've just taken early retirement and from next month my available credit will be over three times my income. 

About 3 years ago I decided to try stoozing and borrowed £30k on credit cards in a few days. At the time I wasn't expecting to need any significant credit. I then decided to buy a second home / holiday home. I went into a Nationwide branch and the guy I spoke to very helpfully ran some figures for me. Given I had a fairly limited time to pay a mortgage it worked out that each £10k of debt reduced my available mortgage by £40k. He recommended I reduce my debt to under £10k, which I did and the mortgage process was very straightforward.  They didn't show any interest in the available limits, only in the debt I was carrying. 

Paully28

I would imagine it also depends on your salary, as 100% of £18,000 could be seen as more problematic as 100% of a much higher salary. 
For what it is worth, my salary and available credit is about the same, and with a charge card on top. 

MEM62

Salary £54K, available limit (across three cards) £33k.