How to show Repaymentability

I am planning to apply for a mortage in Jan 2006. At the moment I have a credit card bill for €5000.00. If I pay €1000.00 off this every month between now and then and show a clear balance when I'm going for the mortgage will that go for or against me.

For you! Credit card bills are treated like bankloans when going for a mortgage. If you have a zero balance on card you will be eligible for a larger mortgage than if you owed 5k on it. Beside that the payment history 9but not the amount) will show up on your ICB report, demonstrating your ability to pay promptly.

not necessarily true... lenders do not treat credit cards the same as term loans,
as in they do not take into consideration the repayments to a credit card when calculating your net disposable income available to support a mortgage
and credit card payment history does not show on the ICB, the only recording if any on the ICB on a credit card would be a registered judgement.

A repayment of 1000 a month will to a certain extent add a positive factor to any mortgage application you make, but the bottom line is how much you qualify for based on your income.

Molly said:

not necessarily true... lenders do not treat credit cards the same as term loans,
as in they do not take into consideration the repayments to a credit card when calculating your net disposable income available to support a mortgage
and credit card payment history does not show on the ICB, the only recording if any on the ICB on a credit card would be a registered judgement.

A repayment of 1000 a month will to a certain extent add a positive factor to any mortgage application you make, but the bottom line is how much you qualify for based on your income.

Click to expand...

your correct , except I think MBNA give you payment history to he ICB....

when I talked to first active they said they didn't even want to know what I owed on the credit card...

This is what the credit bureau has to say:

Credit cards and credit history

From July 2004, credit card companies have the option of supplying more information on credit card repayments to the ICB. In the past, information was mainly supplied by the lenders only where credit cards were revoked or cancelled. Now lenders have the option of supplying full information regarding opening and closing balances to the ICB. Your card repayment performance will be measured by the ICB on a monthly basis but due to the nature of credit cards, you will also receive an additional 30 days before negative information about your record is recorded.

yes I should have expanded ,credit card companys may now register repayment history, however i work in financial services and read ICB results daily and ive yet to come across a repay history on a CC. only revoked, cancelled and judgements.

Molly said:

yes I should have expanded ,credit card companys may now register repayment history, however i work in financial services and read ICB results daily and ive yet to come across a repay history on a CC. only revoked, cancelled and judgements.

Click to expand...

question releaed to that... do current account/overdraft stuff appear on your record... or is it just loans ?

in so far as repayment historys, its only loans, so mortgages, term loans, etc... Overdrafts and current accounts do not show. however a judgement maybe registered for non payment in relation to overdraft , but this is rare enough...