Important information: Mortgage Bridge provides general information and administrative support as a mortgage introducer. It does not provide mortgage or debt advice, assess eligibility, affordability or suitability, or recommend products. Mortgage advice comes from an adviser acting through an FCA-authorised and regulated network.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Credit utilisation describes how much available revolving credit is being used. A mortgage lender may consider it alongside outstanding debts, repayment history, income, expenditure and other application information.
A utilisation percentage does not, by itself, establish whether a mortgage application will be accepted. Lenders apply their own criteria and affordability assessments, and there is no universal percentage that guarantees approval.
What is credit utilisation?
Credit utilisation compares an outstanding balance with the available credit limit. It is commonly used when discussing revolving credit, such as credit cards, where credit can be reused as repayments are made.
For an individual credit card, the calculation is:
Outstanding balance ÷ credit limit × 100 = utilisation percentage.
For example, a £3,000 balance on a card with a £5,000 limit represents 60% utilisation. This is an illustration of the calculation, not a mortgage lending threshold.
A utilisation figure may describe one account or combine several accounts. It is therefore important to understand which balances and limits are included in the figure being shown.
Why the Percentage Does Not Tell the Whole Story
Two people can have the same utilisation percentage but very different outstanding debts. Someone using £500 of a £1,000 limit and someone using £10,000 of a £20,000 limit both have 50% utilisation, but their balances and repayment commitments differ.
A lender may consider both the proportion of credit being used and the actual amounts owed. Income, household costs, other commitments and the proposed mortgage also affect the assessment.
An overall percentage can also conceal differences between accounts. One card may be close to its limit even where the combined utilisation across several cards is lower.
Is There a Maximum Utilisation Percentage for a Mortgage?
There is no single utilisation limit that applies to every mortgage lender. General guidance about credit scores should not be treated as a lender’s mortgage acceptance criteria.
A particular percentage cannot reliably be labelled “acceptable”, “low risk” or “specialist lending only” without reference to the lender’s current requirements and the rest of the application.
Being below a suggested percentage does not guarantee approval. Being above it does not establish which lenders, products or rates would be available.
What Else May a Mortgage Lender Consider?
Depending on its criteria and assessment process, a lender may consider:
- The balances and limits on individual credit accounts.
- Total outstanding borrowing and repayment commitments.
- Whether payments have been made as agreed.
- Any arrears, defaults, County Court Judgments or repayment arrangements.
- Recent applications for credit and changes in borrowing.
- Income, employment circumstances and household expenditure.
- The mortgage amount, property and available deposit.
No single factor necessarily outweighs the others. For example, making payments on time does not remove the need for an affordability assessment, and a higher income does not guarantee that a lender will accept the credit profile.
How Credit Commitments May Affect Affordability
A mortgage lender assesses whether repayments would be affordable alongside your other financial commitments. Credit cards, loans, vehicle finance, overdrafts and other borrowing may be relevant to that calculation.
The amount a lender allows for a credit card commitment may differ from the minimum payment shown on the latest statement. Lenders use their own methods, so a household budget or online calculator may produce a different result.
A low utilisation percentage does not necessarily mean that borrowing is affordable. Equally, a utilisation figure alone does not show how much mortgage borrowing a lender would consider.
Is High Utilisation the Same as Missed Payments?
No. Using a large proportion of an agreed credit limit is different from missing a payment, exceeding a limit or having an account defaulted.
However, a lender may still consider the level of borrowing when assessing credit risk and affordability. An account being up to date does not mean its balance will be disregarded.
Where utilisation appears alongside payment problems or other adverse information, the lender may consider these issues together under its criteria.
What Can Credit Reports and Statements Show?
Credit reports may show reported balances, limits and payment history. These figures are not necessarily a live view of an account because lenders and credit reference agencies update information at different times.
A credit report may therefore show a different balance from your current account statement. The adviser or lender may request recent evidence to understand a difference.
Bank and credit account statements may also be requested to verify income, expenditure, repayments or other application details. The documents required and the period they must cover depend on the receiving firm and lender; there is no universal three- or six-month assessment period.
If information appears inaccurate, you can raise it with the account provider and relevant credit reference agency. Raising a dispute does not itself confirm an error or require a mortgage lender to disregard the entry.
Does a Consumer Credit Score Determine the Outcome?
The score displayed by a consumer credit service is not a mortgage offer or confirmation of eligibility. Mortgage lenders use their own assessments, which may include credit report information, application details and other relevant records.
A change in utilisation may affect a consumer score, but a score change does not establish whether a mortgage application would be accepted or what interest rate would apply.
What if Balances Will Be Repaid Before Completion?
If an application states that credit will be repaid before the mortgage completes, the lender may apply conditions and request evidence. It does not automatically follow that the commitment will be excluded from its affordability calculation.
The source of repayment funds may also matter. Using savings changes the funds remaining for the deposit, purchase costs and other expenses. Moving a balance to another credit account does not itself reduce the total amount owed.
This guide does not recommend using savings, transferring balances or taking out further borrowing to pursue a mortgage. The consequences depend on your circumstances and the terms of the accounts involved.
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What happens after a mortgage enquiry?
This is an initial enquiry for administrative support and an adviser introduction where appropriate. It is not a mortgage application or an eligibility assessment. Any mortgage advice comes separately from an adviser acting through an FCA-authorised and regulated network. The receiving firm explains its service, fees and information requirements.
Mortgage Bridge has commercial relationships with receiving firms and receives a percentage of the adviser’s commission when an introduced case completes. Acceptance is not guaranteed.
Ask about an adviser introduction
Send details of your enquiry for administrative support and an adviser introduction where appropriate. Mortgage Bridge does not provide mortgage or debt advice, assess eligibility, affordability or suitability, or recommend products. Mortgage advice comes from an adviser acting through an FCA-authorised and regulated network.
Make a mortgage enquiryNo obligation. Mortgage Bridge acts as a mortgage introducer.
Mortgage Bridge has commercial relationships with receiving firms and receives a percentage of the adviser’s commission when an introduced case completes.
Your home may be repossessed if you do not keep up repayments on your mortgage.
How Can Changes to Credit Limits Affect the Figure?
A utilisation percentage can change because the balance changes, the credit limit changes, or both. A lower percentage does not always mean that less money is owed.
For example, a £2,000 balance against a £4,000 limit represents 50% utilisation. If the limit increases to £8,000 and the balance stays the same, utilisation becomes 25%, but the debt remains £2,000.
Closing an unused account can also change an overall utilisation calculation by reducing the available credit included in it.
These are mathematical effects, not recommendations to increase limits, open accounts or keep accounts open. Changing available credit does not guarantee a better mortgage assessment.
Does a Larger Deposit Resolve High Utilisation?
The deposit affects the proportion of the property’s value being borrowed, known as the loan-to-value ratio. Credit utilisation measures something different: how much available revolving credit is being used.
A larger deposit does not remove outstanding debts, replace an affordability assessment or override a lender’s credit criteria. There is no deposit percentage that guarantees acceptance where utilisation is high.
Does High Utilisation Mean a Higher Mortgage Rate?
A mortgage rate cannot be predicted from utilisation alone. Product availability and pricing depend on the lender, its current products and the wider application, including the loan-to-value ratio.
It should not be assumed that high utilisation automatically requires a specialist lender, manual assessment or a particular type of mortgage. An adviser acting through an FCA-authorised and regulated network can assess potential options within the scope of their firm’s service.
Information That May Be Requested
To understand the application, an adviser or lender may ask for:
- Credit reports and recent account statements.
- Details of balances, limits and required repayments.
- Evidence of income and regular expenditure.
- Details of other borrowing or repayment arrangements.
- Evidence of deposit funds and their source.
- Evidence relating to any credit expected to be repaid before completion.
Requirements vary. Providing documents helps the receiving firm understand the circumstances but does not guarantee mortgage acceptance.
If You Are Struggling With Repayments
If credit repayments are becoming difficult to manage, free debt advice can help you understand your options. MoneyHelper’s debt advice locator provides information about available services.
Mortgage Bridge does not provide debt advice or recommend changes to repayments, borrowing or account arrangements.
How Mortgage Bridge Can Help
Mortgage Bridge provides general information and administrative support and passes mortgage enquiries to advisers acting through an FCA-authorised and regulated network. We do not recommend mortgages, assess suitability or confirm whether a lender will accept an application.
An adviser receiving your enquiry can discuss your circumstances and explain the services their firm provides, including any applicable fees. Any mortgage application remains subject to the lender’s assessment and current criteria.
Mortgage Bridge has commercial relationships with receiving firms. When an introduced case completes, we receive a percentage of the commission earned by the adviser. We therefore have a financial interest in completed introductions.
Further information about our role and how enquiries are handled is available in our About Us page, Terms and Conditions and Privacy Policy.
This guide provides general information only. It is not mortgage or debt advice. Lender criteria and individual circumstances vary, and no mortgage outcome is guaranteed.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Eligibility, affordability and suitability
Eligibility concerns a lender’s current requirements. Affordability concerns whether repayments can be maintained, taking account of relevant income, expenditure and commitments. Suitability concerns whether a recommended mortgage meets individual needs and circumstances and is assessed when an adviser acting through an FCA-authorised and regulated network provides mortgage advice. Meeting one assessment does not establish the others. Mortgage Bridge does not carry out these assessments.
Costs and independent debt support
Free, independent debt advice is available through MoneyHelper’s debt advice locator. This guide does not recommend changing debt repayments, using savings or taking additional credit to obtain a mortgage.
Securing previously unsecured debts against a home increases the risk to the home. Lower monthly payments do not necessarily mean lower total costs. Longer repayment terms and fees can increase the total amount repaid.
Referral disclosure
Mortgage Bridge has commercial relationships with receiving firms and receives a percentage of the adviser’s commission when an introduced case completes. An introduction does not guarantee acceptance or completion.
Read about us, our terms and conditions and our privacy policy.
Frequently asked questions
Does meeting one criterion guarantee a mortgage offer?
No. The lender assesses the complete application, including credit, affordability, property and other requirements. Acceptance is not guaranteed.
Does Mortgage Bridge assess eligibility or recommend a mortgage?
No. Mortgage Bridge provides general information and administrative support as a mortgage introducer. It does not assess eligibility, affordability or suitability or provide mortgage or debt advice. Mortgage advice comes from an adviser acting through an FCA-authorised and regulated network.
Sources and review
- FCA Handbook: responsible lending
- FCA Handbook: mortgage advice and suitability
- TransUnion: account information and reporting
- ICO: credit records and accuracy
- MoneyHelper: consolidation risks
Last reviewed: . This article is subject to periodic review. Information and lender criteria may change. General information only; this is not a personal recommendation.
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