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£1000 on credit cards
James-may
Posts: 186 Forumite
Hi I have just saved for a 5% deposit, I'm hoping to apply for a mortgage early June.
I have just under £1000 between 2 credit cards, by the time end by comes round another £1000/£2000 depending on bonuses saved, but that would be handy to buy a few new things around the house, or for any fees and legal costs, or would it be better to just pay off the cards in full before application?
I'm not sure how credit cards affect an application, I have other cards sat there I don't use also, and one of the cards I have is offering 18 month interest free transfer, so if I wanted to buy house stuff I could put it on a card after mortgage approval then transfer to interest free.
Anyway, thanks for any help.
I have just under £1000 between 2 credit cards, by the time end by comes round another £1000/£2000 depending on bonuses saved, but that would be handy to buy a few new things around the house, or for any fees and legal costs, or would it be better to just pay off the cards in full before application?
I'm not sure how credit cards affect an application, I have other cards sat there I don't use also, and one of the cards I have is offering 18 month interest free transfer, so if I wanted to buy house stuff I could put it on a card after mortgage approval then transfer to interest free.
Anyway, thanks for any help.
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Comments
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Getting rid of your existing debt is generally a good idea (especially if interest-bearing), but whether it's essential will depend on the lender and your affordability.
Things look pretty tight with credit card debt and only a 5% deposit.
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@james-may Depends on the rest of the case and the affordability numbers. 1k cc debt with most lenders is treated as a monthly outgoing of 3%, so £30 a month.
And in fairness, most clients I see who use credit cards for daily spending (and pay it off in full every month) carry this much debt on their credit reports anyway.
In any case, it depends on the specific numbers and the background details.I am a Mortgage Adviser - You 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.
PLEASE DO NOT SEND PMs asking for one-to-one-advice, or representation.
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I have a broker I can ask about this nearer the time, so will probably just keep saving, and if required, pay it off cards.K_S said:@james-may Depends on the rest of the case and the affordability numbers. 1k cc debt with most lenders is treated as a monthly outgoing of 3%, so £30 a month.
And in fairness, most clients I see who use credit cards for daily spending (and pay it off in full every month) carry this much debt on their credit reports anyway.
In any case, it depends on the specific numbers and the background details.
it might be the lender may offer the finance provided credit cards paid off in full before completion I suppose.0
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