Credit cards and mortgages

madstar

Would it be a problem to apply for a mortgage when at the same time you have a credit card to pay off?  The card has been maxed out with paying off the minimum each month - been like this for the last 6 months or so

Wondering how this affects mortgage applications.

Thanks

D

Thinkandgrow1

No they will just knock it off affordability. Is it on 0%? 

madstar

Cheers!  Its not on 0%, cant find any cards that would transfer 1400 at this rate.  Looking to apply for a mortgage next month 

Hoenir

Use some of your savings to clear the debt. Why incur high interest unneccessarily? 

madstar

New to it all.  I will have a small amount to put forward to co-own.  I would need to take money from the deposit to pay off the credit card.  I would get a bigger interest rate then.  From what I've gathered so far, the credit card balance affects affordability.  What I will be able to pay monthly, which would narrow my choice of house I could buy.

Phoenix72

Look at it this way, would you lend money to someone paying the minimum on an existing  relatively small debt.

madstar

Phoenix72 said:

Look at it this way, would you lend money to someone paying the minimum on an existing  relatively small debt.

@Phoenix72.  I would consider everything and not the credit card payments only.

Phoenix72

madstar said:

Phoenix72 said:

Look at it this way, would you lend money to someone paying the minimum on an existing  relatively small debt.

@Phoenix72.  I would consider everything and not the credit card payments only.

Neither you or I or lending the money so kind of irrelevant what we consider. But there is a minimum payment market on your credit file which is a negative. A maxed out credit card - negative.

What we don't know is other income and outgoings ans mortgage amount and everything may be hunk-dory.

Reading between the lines, things sound tight financially.