Preparing for remortgaging with credit cards

FreakShow! · 15 February 2019 at 8:51PM

I took out my mortgage 2 years ago for a 5 year deal. Overpaying happily enough, but with my deal about halfway, I wanted to start thinking about when it comes time to remortgage.

I currently have 3 credit cards, £5k with amex, nationwide and £2.1k with Amazon (new day). I pay all 3 off with a direct debit every month, preferring the Amex where accepted, Amazon where it's not and then the nationwide solely for using abroad as I'm not charged to use it there.

I recently received a letter from the nationwide saying I could extend my limit to £6k and I'm not sure if it's something I should do. I'm only ever near the limit with my Amazon card due to its low limit, so I'm not in need of the extra credit. But will it be seen as favourable or negative if I have all this credit available?

I'd like to clarify this now so that any immediate hits to the credit score because of this can have the time to repair once I'm remortgaging.

Thanks

[Deleted User] · 15 February 2019 at 9:23PM

I would accept it as your limits are fairly low.

Remember that your credit score is just a made up number, It will drop with any change, whether good or bad, but as no one sees or cares about it, it's fine.

FreakShow! · 15 February 2019 at 11:12PM

I always just assumed having potentially £12k of unsecured debt was high, but fair enough.

I realise the credit score is a made up number, but when it comes to remortgaging it is going to be looked at alongside the amount of credit I have available, and presumably the usage of that credit.

I'd like to be sure that having too much isn't going to cause an issue.

[Deleted User] · 15 February 2019 at 11:52PM

FreakShow! wrote: »

I realise the credit score is a made up number, but when it comes to remortgaging it is going to be looked at alongside the amount of credit I have available, and presumably the usage of that credit.

It won't. As lenders, we don't see the made up number - primarily because it's made up and of no relevance.

Lending criteria is based on your credit history.

Your limits are very low, so take any opportunity to increase them. It will demonstrate that lenders trust you.

A4445 · 17 February 2019 at 2:36PM

I have about 90k of available credit and was accepted for a mortgage, without a single question from the underwriter. Offer in 5 days! I don’t owe anything on them and agree it’s a bit ridiculous but it hasn’t made any difference.

Preparing for remortgaging with credit cards

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