Credit card hard credit check before mortgage

Luke451
Luke451 Posts: 156
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edited 14 October 2023 at 1:43PM in Mortgages & endowments
Hi,

Unfortunately, I was in the process of taking a credit card, for some issue along the process (not my fault), that lasted a long time and now I have one, which bumped my available credit by 2.5 folds at 16k mark...

Now, the good thing is that I cleared all the credit card debt, and it was regular debt, nothing weird, with my credit score being excellent since 1y (just due to the few years of permanence in UK), and very good since years...

So, my situation is as follow:
1. One month ago I made the credit card application, I don't even see the hard search on my file because it was pre-approved, but I think that it will show up in a while, but I do see the new account open.

2. Never had a bad debt, unless the credit card debt always paid in time since 4y, no other debts, apart when I took a 60 months loan 1y ago to spread some big payment and I closed it down in 4 months.
(the loan was unsecured, but as long as I pay, it shouldn't be bad...)
The credit card debt will have some balance, like 20-30 pounds monthly, those are recurrent subscriptions that I can't quite remove in time, I don't think there is any problem with it.

I have the intention to take a mortgage for an house of around 230k, 250k maxxxxxx.
Essentially, I want to start safe, put down 10% and then leave around 30-35k in cash, then overpay since the 2nd or 3rd month, just the time to settle.
That chunk of savings will be useful in case things go bad... The most of it will be reinvested as soon as I can in the ISA.

Is there anything else I can do prior to the mortgage?
Is there any specific mortgage you would take? I don't see many options, unless 40y mortgage at 5.5%, which makes it around 1000-1200 monthly, I'd like to set over payments around 500 in addition every month, but probably the first few years I'll make it more, for a total of 10k yearly, I hope I can change fairly at my own demand when to reduce it, or I may get into troubles, I'll check that later.
It's good to overpay so I could always ask a payment holiday if I lose my job, without affecting my credit rating, the mortgage itself doesn't bother me much, it's just another fee :D .

Comments

  • Brie
    Brie Posts: 9,265
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    credit score is meaningless.  it's the credit history that's important and it sounds like yours is quite good.

    are you registered to vote?  that makes you look more stable.  I think you have said you've only been in the UK for a few years so it may be a case of seeing if registering is possible, if not it's just one tick out of quite a few boxes.  
    "Never retract, never explain, never apologise; get things done and let them howl.”
  • Luke451
    Luke451 Posts: 156
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    edited 14 October 2023 at 7:20PM
    Brie said:
    credit score is meaningless.  it's the credit history that's important and it sounds like yours is quite good.

    are you registered to vote?  that makes you look more stable.  I think you have said you've only been in the UK for a few years so it may be a case of seeing if registering is possible, if not it's just one tick out of quite a few boxes.  

    Yes, I'm registered to vote, but I'll buy in another location, much far away, but I don't think it makes a difference.

    What about the possible recent hard search?
  • MWT
    MWT Posts: 9,110
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    Luke451 said:

    Yes, I'm registered to vote, but I'll buy in another location, much far away, but I don't think it makes a difference.

    It can make a difference as the lenders will need to understand why you are not buying where you currently live and work.
    Obviously there can be legitimate reasons, but I would suggest you talk to a good broker as they will be able to help you pick the best lenders for your particular circumstances..

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