Decrease credit card limit before mortgage application

Guru8619

Morning,

I am due to remortgage in August and just taken out a new Halifax clarity credit card to use abroad for holiday later in year. They gave me a limit of £4k.

I have just noticed an older card which I have around £1k on (0% rate) but had a massive credit limit of £9k.

I have another two CC that I use for day to day spending and cleared each month, with about £3k limit on each.

Should I reduce the CC limit on these new cards before applying for mortgage? Im my head it seems a negative thing to have so much credit available but reading some articles suggest not a bad thing?

Also does lowering show as a credit search on file?

Nebulous2

You'll get varying suggestions on here, but I wouldn't reduce anything. 

It doesn't sound like you have a huge total credit limit. I've had in excess of my salary in overall credit limits for more than 20 years. At times I've had over twice my salary - pushing close to three times at one point. 

For a mortgage they will be much more interested in any debt than credit limits. They also don't like changes. Changing limits leaves a doubt as to whether you reduced it or the lender reduced it for you. 

Reducing a limit shouldn't involve a hard search. 

Brie

I was told by my bank when porting my mortgage that they consider all the credit available not just the credit you use.  This was based on the fact that I needed to be able to afford my mortgage plus all the credit if I maxed all my cards.  Granted my cards at that time had a total limit more than the mortgage I was after so reducing them made a lot of sense for me.  

MattMattMattUK

I would ask your broker, but from personal experience it did not matter. I had around £20k of available credit at the point I took out my mortgage (with none being used) and the bank or broker did not care. I was at maximum borrowing, but affordability was fine so that could have been a factor, that being said card limits were never even mentioned. 

maxximus75

Your credit limits are not particulary high.

Personally, I would leave well alone.  Reducing your CL will increae your debt to available credit ratio.