Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    • elonii
    • By elonii 20th Apr 17, 11:44 AM
    • 51Posts
    • 53Thanks
    How Does Large Credit Card Balance Paid in Full Affect Mortgage Offer?
    • #1
    • 20th Apr 17, 11:44 AM
    How Does Large Credit Card Balance Paid in Full Affect Mortgage Offer? 20th Apr 17 at 11:44 AM
    Hi folks, hoping for a wee bit of guidance!

    I'm just in the process of tidying up my credit file and general financial affairs before going for an offer in principle in a few weeks.

    I'm self employed and running my business as sole director of a LTD company. I'm using personal credit cards to fund my monthly advertising costs. At any given time I have several thousand pounds sitting on two credit cards in my own name. This is essentially because a personal card gives better FX rates and charges (I spend a lot in dollars).

    These are paid in full every month, but will they affect any offer due to high credit limit utilisation at point of credit check, or do they tend to look at the fact they are always cleared?

    I know I should get a card in the business name, but it'd cost me a few hundred quid a month in charges. Which is not desirable, but I'll do it if I have to for the duration of operation "get a home"!

    I am having to get a mortgage on my own due to my husband not being a UK citizen, so I really need to make sure I get everything right first time. Particularly if that dream house is close to our upper borrowing limit (isn't it always?!)

    Sincere and humble thanks in advance for advice. Google doesn't seem to be giving me the exact info I need!
Page 1
    • Lilla D
    • By Lilla D 20th Apr 17, 12:09 PM
    • 329 Posts
    • 171 Thanks
    Lilla D
    • #2
    • 20th Apr 17, 12:09 PM
    • #2
    • 20th Apr 17, 12:09 PM

    Most lenders ask whether the credit card balance will be cleared by the time the mortgage starts or not, so for them it's not an issue, if you have a balance now.

    However, there are lenders who don't ask the question about clearing the cards, they just ask for the balance and take it as a commitment.

    Dependent on your circumstances, and thus the likely lender choice, it might or might not be beneficial to clear the cards prior to the application. If you discuss your situation with a broker, they will be able to advise you when considering all the case details.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • elonii
    • By elonii 20th Apr 17, 1:14 PM
    • 51 Posts
    • 53 Thanks
    • #3
    • 20th Apr 17, 1:14 PM
    • #3
    • 20th Apr 17, 1:14 PM
    Thanks for that, everything does come back to speak to a broker with questions like these!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

652Posts Today

6,151Users online

Martin's Twitter
  • It's the start of mini MSE's half term. In order to be the best daddy possible, Im stopping work and going off line?

  • RT @shellsince1982: @MartinSLewis thanx to your email I have just saved myself £222 by taking a SIM only deal for £7.50 a month and keeping?

  • Today's Friday twitter poll: An important question, building on yesterday's important discussions: Which is the best bit of the pizza...

  • Follow Martin