Mortgage application - credit card q

[goldpendant]

DH and I are about to apply for a second mortgage.

I have £1000 outstanding on a credit card (limit is £10K) which is paid back monthly.

I can't afford to clear this before we make the application but I have a good credit history and for what it's worth a reasonably high credit score.

My mum has kindly offered to transfer the debt to her own credit card (which is interest free) so that we appear debt free and I'll just pay her monthly. Is this a reasonable plan or should we just tell the broker about my credit card?

Will it even be an issue or am I overthinking it?!

They usually ask the balance of the card from the past 6 weeks anyway so you’d still need to mention it. They then ask if it will be paid off by the time the mortgage starts.

Ok thank you, but do you think best to get it cleared or just roll with it?

When we applied for the DiP we both had a credit cars each. His with £3k on and mine was similar. We knew we'd clear both in the next two months which we stated. By the time we sold, found a house and then proceeded to apply for the mortgage it was clear. They were happy with screenshots of the credit balance as 0. I know they're not all the same but it wasn't an issue for us.

Best to clear it. When we applied for a mortgage I had a couple of hundred on one. They mentioned it during the checking process and I paid it off then and there, which satisfies them. So I don’t think having a recent balance would be a problem, just a current one

When you say it's paid back monthly, is that you pay the whole bill each month? How close to your upper mortgage limit are you?

We put all our monthly spending on our credit cards and clear the balance each month (it's a cashback card so we try and put everything on it) - we didn't have an issue from this but we were borrowing less than our maximum

We had a loan and credit card when we got our mortgage and it wasn’t an issue at all.

When we moved once (unplanned) we had 5k on a credit card. Just booked a holiday. Didn't seem to make a difference although all our other outgoings were low & we had a highish income.

I have £15k on credit cards from failed fertility treatments. Just counts as another outgoing as long as you’re servicing it.

Sounds messy doing it that way. Can your mum transfer you £1k instead and you pay it off properly?

if it will affect the amount of borrowing you can get then clear it 3 months or use mum's help before applying as some lenders will ask for a period before the application.
however, if you are not stretched in term of borrowing then don't bother.
I cleared any purchase accounts, credit cards before applying lately.
good credit history won't make a difference, it is outgoings vs incomings.