Slight panic prior to mortgage - help!

ddraiggoch2021

Hi all,

Hope you're all well and thanks in advance for any advice.

At present, I have one 'for emergencies' credit card, and one 0% transfer one that I can no longer transfer to (received in July 2021).

I wonder if you could help me, please - my partner and I are looking to buy a house later this year.

Following an unexpected credit card spend on my car last month, I put some money on the 'emergencies' credit card.  I went to transfer it to my 0%, but balance transfers are no longer available.  My total debt is £2000 - £1600 on the 0%, and £400 on the emergency card.

I today applied for another 0% credit card, which I am awaiting to hear the result on (I was successful in principle via the MSE eligibility checker), and they will be coming back to me in a few days.

My credit score is excellent, however there is a marker against the fact that I have applied for credit in (relatively) quick succession.

I am now panicking a little - I thought I was being sensible by consolidating everything, but now I'm worried that my applying earlier this year will have an impact on my eligibility for a mortgage later this year.

Can anyone please advise?

Thank you.

[Deleted User]

There's no marker against the speed with which you apply for credit - just a record of the searches and accounts. Your credit score is equally not seen by lenders. 

If you were completing on your mortgage in the next couple of months or so, it might be a concern. But otherwise, nothing to worry about.  

Aim to reduce your debt as you get towards applying for the mortgage.

ddraiggoch2021

Deleted_User said:

There's no marker against the speed with which you apply for credit - just a record of the searches and accounts. Your credit score is equally not seen by lenders. 

If you were completing on your mortgage in the next couple of months or so, it might be a concern. But otherwise, nothing to worry about.  

Aim to reduce your debt as you get towards applying for the mortgage.

Thanks so much for responding so quickly, that's helpful to know.

Realistically, we will only be getting an offer in principle over the next few months - we are meeting with a financial advisor next month, with a move date of around September all being well.

I had a horrible feeling that wanting to be 'sensible' (well, as sensible one can be with debt) and consolidating the debt may work against me.

My separate nail-chewing worry is that the card wasn't agreed immediately - which makes me think they'll reject it, and that will have its own ramifications!

[Deleted User]

It's true that consolidation isn't generally a great idea, as it's just can-kicking and doesn't address the real problem.

But it's an improvement on paying interest on a debt if you genuinely can't clear it.