How long do I wait to make a mortgage application if I've just got a new CC?

obloquy

Hey, I wanted to start a mortgage application. Have 95k saved deposit, earn 56k, no student loan, pay off all CC debt in full every month so no missed payments, first time buyer and it's a single application.

My slight issue is that I decided to get a new credit card with Amex as it was giving me a good initial limit of £15k. Despite having good credit history, my sub-prime CC with Barclaycard is low (£3000) if I wanted to make a bigger purchase. Plus Barclays are rubbish at any increase or allowing anyone to upgrade their cards to better ones without closing the account, waiting 6 months and then reapplying for a different one.

Might have been a hasty decision I'll admit, but how long should I wait now before starting a mortgage application? Will it impact the decision if I start in 3 months or so or will I have to wait longer?

Or would the new card make much difference as long as I'm making my payments in full every month showing a good history?

DullGreyGuy

obloquy said:

Hey, I wanted to start a mortgage application. Have 95k saved deposit, earn 56k, no student loan, pay off all my CC's in full every month so no missed payments, first time buyer and it's a single application.

My slight issue is that I decided to get a new credit card with Amex as it was giving me a good initial limit of £15k. Despite having good credit history, my sub-prime CC with Barclaycard is low (£3000) if I wanted to make a bigger purchase. Plus Barclays are rubbish at any increase or allowing anyone to upgrade their cards to better ones without closing the account, waiting 6 months and then reapplying for a different one.

Might have been a hasty decision I'll admit, but how long should I wait now before starting a mortgage application? Will it impact the decision if I start in 3 months or so or will I have to wait longer?

Or would the new card make much difference as long as I'm making my payments in full every month showing a good history?

Each bank has its own scoring/decision system so there are no universal answers. A notable aspect will depend on the LTV ratio and the value of the loan -v- salary. 

We applied and got a new card during our home buying process and our mortgage was approved without problem but we were vastly below what they said they'd lend up to (though a high LTV). Clearly the higher the LTV or the more you are stretching yourself the closer they'll look at the application. 

amnblog

You are worrying about something that is most likely not an issue. Apply for a mortgage when it suits your circumstances.

ACG

Generally speaking it can take a few months to recover from the credit check. But realistically the difference is so minute it would only make a difference in the outcome if you were on the edge of acceptance/decline anyway. 

As amn says, crack on whenever you are ready.