To think I won't get the mortgage approved

[whathaveidone29]

We're just about to apply for a mortgage.

However I have recently used £1100 on my credit card. My payments are never late and I have a 999 score on Experian.

However i am so anxious I will ruin our mortgage because of this ..

I haven't even told DH yet. As I used the money recently to treat myself 🙈 (new clothes, hair done , etc) - which I haven't done since having children 4 years ago that's why I could justify spending it all.

I can go up to 3k on it so it's not on Max but how stupid was I do do this before buying the house

You will just need to pay it off before getting a mortgage.

The most alarming thing is that you went over a grand in debt on fairly frivolous things and have kept it a secret from your husband who you share a life and family with.

Can you really say you wouldn’t be bothered if you found out your husband had secret debt?

It won't make any difference as to acceptance or not but they will take the repayment amount into account with their offer for affordability purposes.

People who have credit card debt get mortgages every day.
It will likely reduce the amount you can borrow but £1100 won’t reduce it by much. So I guess it depends on how much you want to borrow compared to how much you can borrow.

It will depend if you can comfortably afford everything. Having debt down not exclude you from having/getting a mortgage. Lots of people have debt. What matters if you can afford to repay it.

You’re absolutely fine. It’s under 50% of your credit limit so it won’t even register with a lender.

Please tell me it’s on an interest free card though

Do you have the money to pay it off?

I paid for a 3k holiday on ours the month before we applied for a mortgage. We paid it off the same month and because our other 2 credit card bills were smaller in the 3 months of bank statements they didn’t question it at all.

I'd be more worried about the fact that you've kept it from your DH if I'm honest. Is he controlling with finances and that's why you kept the spending a secret? You will need to tell him as if it's a joint mortgage and you have an appointment together and it won't be great having to tell him then.

It's fine
you can get a mortgage with credit card debt if it's only a small amount but it's not sensible at all to 'treat yourself' on a credit card and especially before applying for a mortgage!

Very stupid, especially as they look at recent transactions to assess your general spending habits.

By recent it's usually 3-6 months worse. When we apply for mortgages our brokers always say to not make any major purchases for the 3 months prior unless something easy to explain (new car etc.) blowing it on clothes etc. will make it look like this is a habit

Yes I completely agree with you all

I was not sensible at all. I don't know what came upon me. I've never done this before ever. Had a really stressful year and someone suggested I treated myself and I clearly did.

He knows I've bought new clothes & had hair extensions done( lost pretty much all my hair after the pregnancies) but he doesn't know how much 😭 he'll have a shock 🥲

I’m sure it’ll be fine. I got a mortgage as a single person with 3k on a credit card.

I would suggest you tell him before you sit down in woth he mortgage advsior or it will be an incredible awkward momemt when they ask you about it.
Are you paying it off in full or installments, if so how much, the quicker obviously the better

Dh had £5000 on his credit card when we applied. It was our new office furniture bill. They weren't bothered and dh said g he e will pay it straight away.

I really don't think you've got anything to worry about re the mortgage, they do know that people have credit cards, if you can show that you always pay it off that's more what they're interested in.

I also don't think anyone should be guilting you about your husband not knowing about this spending spree. I think maybe I'm in the minority here but I think it's perfectly reasonable for couples to have separate finances/ credit cards etc, I don't see any issue with one party having a credit card and the other not necessarily knowing everything they use it for (providing neither party is struggling or in financial difficulties or not paying off debt etc)

I’m pretty sure it’ll be fine. I had about £700 across two cards when we applied for our mortgage and they didn’t even mention it. I definitely didn’t have to pay it off.

How long will it take to repay? I doubt it will much difference to your mortgage.

It's not having the credit card balance, it's the type of spend this is that will be a problem.

Mortgage lenders look at recent transactions to gauge your spending habits, hence why brokers advise to cut down on general spending in the few months beforehand.