I should be applying for my first mortgage next year, should the availability of high LTV mortgages return. In the meantime I’ve been assessing my current credit situation. When I started out in my career I was on a relatively low salary but starting on a path where I expected pretty rapid career and salary progression. In order to manage my living costs initially, I took out a couple of 0% purchase cards. Some time later I then moved these to 0% balance transfer cards and have been paying them down quite aggressively for the last couple of years.
I’m now in a position where from next month, the cards will be cleared. My total available credit is pretty much at 100% of my annual gross salary, with some cards having not had a transaction/repayment for a couple of years with a zero balance.
Do I close down the cards and see the available credit drop, or keep them open (some will eventually close due to inactivity) to show I have a high available credit/good credit history with no missed payments.
I asked this of my mortgage advisor and he said that lenders aren’t really bothered - they’re only interested in the amount outstanding and monthly repayments (which will be nil). But I think that seems too simplistic an answer really.
Any thoughts welcome