How will this look on credit searches
How will this look on credit searches
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Discussion

DudleySquires

Original Poster:

870 posts

264 months

Wednesday 13th February 2013
quotequote all
I am looking to remortgage soon and was curious about the following. I have ~£8k on a couple of interest free credit cards. I pay the minimum on each each month to avoid charges, and the balance is matched (exceeded slightly, actually) by savings in (..what passes for these says as..) "high" interest rate accounts, into which I deposit each time I spend on the CC.

So the reality is that the CC balances are not a risk, but the credit searches will not show the matching savings. Would it be wise to pay off the CCs before applying for a mortgage?

Ta

supersport

4,638 posts

257 months

Wednesday 13th February 2013
quotequote all
I used to do this quite a bit before the interest rates dumped, about £20K at one time. We applied for additional borrowing to build an extension and I don't remember it coming up. This was also an excellent opportunity to spend more of the credit card companies money. I used to worry about having so many cards, but again it never caused any problems.

Sarnie

8,373 posts

239 months

Wednesday 13th February 2013
quotequote all
DudleySquires said:
I am looking to remortgage soon and was curious about the following. I have ~£8k on a couple of interest free credit cards. I pay the minimum on each each month to avoid charges, and the balance is matched (exceeded slightly, actually) by savings in (..what passes for these says as..) "high" interest rate accounts, into which I deposit each time I spend on the CC.

So the reality is that the CC balances are not a risk, but the credit searches will not show the matching savings. Would it be wise to pay off the CCs before applying for a mortgage?

Ta
It will only be an issue if your affordability is already tight..................

DudleySquires

Original Poster:

870 posts

264 months

Wednesday 13th February 2013
quotequote all
Sarnie said:
It will only be an issue if your affordability is already tight..................
Looking at ~3x salary, possibly less depending on timing. Don't know where that falls on the affordability tightness scale? Is the max about 3.5x - 4x?

Sarnie

8,373 posts

239 months

Wednesday 13th February 2013
quotequote all
DudleySquires said:
Looking at ~3x salary, possibly less depending on timing. Don't know where that falls on the affordability tightness scale? Is the max about 3.5x - 4x?
You should be ok with that.

illmonkey

19,827 posts

228 months

Wednesday 13th February 2013
quotequote all
Previously I've just said that the debt will be cleared before the mortgage starts. No more questions were asked.

DudleySquires

Original Poster:

870 posts

264 months

Thursday 14th February 2013
quotequote all
Ta for the advice. I'll carry on as I am doing then thumbup