Mortgage Applications & Store Cards

tekd00d

Can anyone advise me, i'm just about to apply for a !00% LTV mortgage, I have a loan which runs out on next year, but i have a £200 debt on a store card. Am i better off paying this off before I apply for my mortgage so it wont affect the amount they lend me when they process my application?

meanmachine_2

Your 100% mortgage worries me more than a tiny £200 debt would.

But that's your lookout. Why would you think that such a small debt would be a problem? And if you can't pay it off in a heartbeat then why are you even thinking about taking out a much bigger loan?

tekd00d

well mainly because me borrowing £80k mortgage is my limit from the banks etc. Some places have offered (well through their websites 3.5 times salary) just under 80. some have offered over 80k but not by that much (3-8k either side).

I thought they'll base how much to lend me based on my outstanding credit, so if i've got a store card with 200 on it, would they say, "you're going to pay that over 12 months, so we'll offer you less money". Do they class it as a recurring debt? I can pay it off, just rather not do it in one seeing as how i'm buying a house and need all the money i can get for furniture etc.

I need about 80k, but based on some companies only offering 3.5 times salary, is it worth trying these companies where the amount they'll offer as standard is just below what i need. I can easily afford it the mortgage, as i have next to no regular outgoings, just want to be sure who i apply with because i've heard over applying can be bad for your credit rating.