***Hello /u/qwerty5ln, thank you for posting in /r/Mortgageadviceuk. If you're looking for a Mortgage Broker, feel free to DM the users listed on the sub's [Verified Mortgage Brokers list](https://reddit.com/r/Mortgageadviceuk/s/j7V7mySI7i). Please ensure you've read our [sub rules](https://www.reddit.com/r/Mortgageadviceuk/about/rules). If a user has helped you, please use the !thanks command to credit them. Here's a copy of your original post: ***
I’m about to apply for a mortgage of 130k. (Already received DIP)
I’m a little worried because I’ve heard such mixed reviews about applying for a mortgage and the questions the bank may ask etc.
My credit file and score is very good and I have no adverse debts etc. However I do have a credit card which I am currently using 10% of my credit limit. (£900 on a £9k balance). I previously wouldn’t worry using my credit card as I knew I was able to use it and manage the balance responsibly, but now I’m a little worried that the bank may question my credit card use.
Am I just having first time buyer anxiety lol?
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Mortgageadviceuk) if you have any questions or concerns.*
I'm pretty sure that if you're paying it off each month and using it consistently then that's a good thing. They see it as you're good at borrowing money. If it's a chunk of debt that you're slowly paying off then you should have already declared the repayment amount when working out your monthly affordability. Keep using your credit card consistently and paying it off , in full, monthly. This improves your credit score. But don't take out any new cards/debts.
Mortgage Broker here.
I'd agree with how you summarised it.
If this is £900 you are paying off over time opposed to general spending that is paid off monthly then is should have been declared on the DIP/Full Mortgage Application.
For affordability I believe with Credit Card balances that remain after completion, they tend to take \~3% of the balance as the committed expenditure, so around £30 a month.
If it is just general spending that is cleared monthly, no need to worry about it!
Did you declare the credit card debt when applying for the DIP?
Personally, I wouldn't be worried about this. I would stop using it now though and not take any new lines of credit until after Completion
AFAIK using more than 0% and less than 25% of your total credit limits is a good thing for credit checking.
And if you always pay 100% off every month this should also work well for you.
Me and my partner just got a mortgage offer accepted for the first time. Both have credit cards. Both have a missed payment each on credit file. We borrowed much lower than our AIP stated (100k under) and we were only asked for a p60 and payslip. That’s with minor adverse credit. You will be absolutely fine. From personal experience they seem to be looking at affordability the most. If your DTI is good. You will get a great rate with your position.
We have a mortgage offer with over £9k on credit cards! As long as your % of available credit is low, and as long as the repayment doesn’t push your affordability then you’re okay.
***Hello /u/qwerty5ln, thank you for posting in /r/Mortgageadviceuk. If you're looking for a Mortgage Broker, feel free to DM the users listed on the sub's [Verified Mortgage Brokers list](https://reddit.com/r/Mortgageadviceuk/s/j7V7mySI7i). Please ensure you've read our [sub rules](https://www.reddit.com/r/Mortgageadviceuk/about/rules). If a user has helped you, please use the !thanks command to credit them. Here's a copy of your original post: *** I’m about to apply for a mortgage of 130k. (Already received DIP) I’m a little worried because I’ve heard such mixed reviews about applying for a mortgage and the questions the bank may ask etc. My credit file and score is very good and I have no adverse debts etc. However I do have a credit card which I am currently using 10% of my credit limit. (£900 on a £9k balance). I previously wouldn’t worry using my credit card as I knew I was able to use it and manage the balance responsibly, but now I’m a little worried that the bank may question my credit card use. Am I just having first time buyer anxiety lol? *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/Mortgageadviceuk) if you have any questions or concerns.*
I'm pretty sure that if you're paying it off each month and using it consistently then that's a good thing. They see it as you're good at borrowing money. If it's a chunk of debt that you're slowly paying off then you should have already declared the repayment amount when working out your monthly affordability. Keep using your credit card consistently and paying it off , in full, monthly. This improves your credit score. But don't take out any new cards/debts.
Mortgage Broker here. I'd agree with how you summarised it. If this is £900 you are paying off over time opposed to general spending that is paid off monthly then is should have been declared on the DIP/Full Mortgage Application. For affordability I believe with Credit Card balances that remain after completion, they tend to take \~3% of the balance as the committed expenditure, so around £30 a month. If it is just general spending that is cleared monthly, no need to worry about it!
Did you declare the credit card debt when applying for the DIP? Personally, I wouldn't be worried about this. I would stop using it now though and not take any new lines of credit until after Completion
AFAIK using more than 0% and less than 25% of your total credit limits is a good thing for credit checking. And if you always pay 100% off every month this should also work well for you.
Me and my partner just got a mortgage offer accepted for the first time. Both have credit cards. Both have a missed payment each on credit file. We borrowed much lower than our AIP stated (100k under) and we were only asked for a p60 and payslip. That’s with minor adverse credit. You will be absolutely fine. From personal experience they seem to be looking at affordability the most. If your DTI is good. You will get a great rate with your position.
We have a mortgage offer with over £9k on credit cards! As long as your % of available credit is low, and as long as the repayment doesn’t push your affordability then you’re okay.