Mortgage interview today

[Lollypoppyflop]

I’m so nervous. I’ve got good credit rating 15% deposit. Been with them for 7 years but I’m borrowing more. I pretty much live in my overdraft and have substantial credit card debt. I’m paying them off. Never missed any payments or been late. Don’t have any car debts and my mortgage won’t be massive but I’m worried they will judge me because of my debt. Should I be worried? Stupid question really because I’m already worried 😟

They might want to know how you can have saved for a deposit and not paid off your existing debt ?

I haven’t saved for a deposit. I’m using equity in the sale of my current deposit.

Property not deposit

Have you got an independent mortgage broker? Mine is worth his weight in diamonds for this sort of thing.

I have enough equity to put down a bigger deposit but want to pay my debts off. My mortgage will still be manageable.

No. I’ll wish I had though just to remove the stress.

I didn’t see the point because I’m tied in with my current mortgage provider on a fixed term. I’m just borrowing more for the property I want to purchase.

They wont judge you and reject you just for having credit card debts. It will affect the amount that will lend compared to if you were debt free, but if you've made regular payments and not missed any, then your credit record is probably pretty good. The overdraft could be a bit more of an issue for some banks but if it's a prearranged overdraft and you've not exceeded your limit then hopefully it should be fine.

Yes prearranged and never gone over.

They won’t reject you for credit card debt or overdraft, but it’s likely they will reduce what you can potentially borrow by roughly the amount of your debt. Unless you’re looking to borrow the maximum amount your income allows you to, that shouldn’t be a problem.

Lenders look at overall affordability and your ability to repay what they lend, if you’re easily capable of covering your outgoings then they’ll proceed on that basis.

Thanks all. It went through with no problem. 😁 I’m so relieved.