Credit Utilisation

JakeMM

I’m looking to secure a mortgage, and am just wondering what total credit card utilisation rate people have had whilst achieving a mortgage with a high street lender?

Never missed a payment, and credit history is perfect with the exception of the utilisation rate.

Rapidly clearing it down, but need to know if I’m facing a losing battle!

Currently sitting at 77%, should be at 63% by the time the score next updates. 

Has anyone achieved a mortgage with a high street lender with similar figures?

K_S

@jakemm In my experience, 'credit-utilisation' may have a minor part to play in the "credit-scoring" (nothing to do with your Experian/Clearscore/Credit-karma credit score) that mainstream lenders will do for all applications but should not be an issue on its own.

The size of the debt may have an impact on your affordability (how much you can borrow) and debt-to-income (how large the background debt is with respect to your income) may also play a part.

But whether your credit-utilisation is at 77% or 63% or 30% is unlikely to make any material difference.

Thrugelmir

Debt owed to annual income is a more important ratio. 

JakeMM

Many thanks for the replies - this is a great help!

James_D

JakeMM said:

Many thanks for the replies - this is a great help!

Thanks for asking the question, I wondered similar myself! Without knowing your own circumstances perhaps it's not the most useful comparison to make but I have about 50% credit utilisation and recently secured a mortgage offer, and at 95% LTV too.