High Credit Utilisation Mortgage: Can You Still Get Approved?
High credit utilisation is one of the most common concerns among mortgage applicants. Even if all payments are up to date, running high balances on credit cards or revolving accounts can affect your credit profile and influence lender decisions. But does high utilisation automatically mean you’ll be declined for a mortgage? Not necessarily.
This guide explains how lenders assess high credit utilisation mortgage applications, the factors that matter most, and how you can strengthen your position. This article provides general information only and does not offer regulated mortgage advice.
What Is High Credit Utilisation?
Credit utilisation refers to the percentage of your available credit that you are currently using. For example:
- £3,000 balance on a £5,000 limit = 60% utilisation
- £200 balance on a £1,000 limit = 20% utilisation
Many lenders view utilisation above 50% as potentially indicating financial pressure, although thresholds vary.
Does High Credit Utilisation Affect Mortgage Approval?
Yes — it can.
High utilisation is treated as a behavioural indicator, suggesting:
- Possible financial strain
- Reliance on credit for day-to-day spending
- Reduced affordability
- Increased likelihood of future repayment risk
However, high utilisation alone rarely results in an automatic decline. Lenders look at the full picture.
How Lenders View High Utilisation
Lenders assess credit utilisation alongside other factors such as:
1. Stability of Income
If income is stable and strong, high utilisation may be less of a concern.
2. Payment History
If all repayments are on time, lenders may view the situation as temporary rather than structural.
3. Recent Behaviour
Lenders focus heavily on recent patterns, especially the past 3–6 months.
4. Type of Credit Used
Using revolving credit (like credit cards) at high levels may be viewed differently from long-term instalment loans.
5. Affordability Calculations
Minimum credit card payments reduce disposable income, affecting affordability.
How Much Utilisation Is Considered High?
Although each lender has its own approach, typical ranges include:
| Utilisation Level | Lender View |
|---|---|
| 0–25% | Low risk |
| 25–50% | Generally acceptable |
| 50–75% | Moderate risk, more scrutiny |
| 75–100% | High risk, may limit lender choice |
| 100%+ | Very high risk, may require specialist lender |
It is not the percentage alone but the pattern over time that matters.
Does High Utilisation Affect Mortgage Rates?
Potentially — yes.
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High utilisation can:
- Reduce the number of available lenders
- Increase the likelihood of higher-rate products
- Trigger manual underwriting
- Limit maximum loan-to-income ratios
Lenders may offer less competitive rates if they view you as higher risk.
Will You Be Automatically Declined?
A decline is unlikely to be solely due to high utilisation unless:
- Other adverse credit issues exist
- Bank statements show financial instability
- Repayments have been missed
- Debt levels are increasing month-on-month
If high utilisation is the only concern and affordability is strong, many lenders still approve applications.
High Utilisation vs Adverse Credit: What’s the Difference?
High utilisation is behavioural, not adverse.
Adverse credit includes:
- Defaults
- CCJs
- Missed payments
- Arrangements to Pay
High utilisation is not adverse, but it can contribute to affordability concerns.
How Lenders Assess Bank Statements When Utilisation Is High
Underwriters closely check the last 3–6 months of bank statements, looking for:
- Overdraft reliance
- BNPL usage
- Gambling transactions
- Returned direct debits
- Spending patterns
- Consistency of income
- Large recurring costs
Strong, stable bank statements can reduce the perceived risk of high utilisation.
How Debt-to-Income Ratio Affects Approval
Lenders may consider:
- Total credit card balances
- Personal loan repayments
- Car finance commitments
- BNPL instalments
- Overdraft usage
If too much income is tied to credit repayments, borrowing capacity may be reduced.
Can a Higher Deposit Help?
Yes — significantly.
A larger deposit can:
- Improve lender confidence
- Unlock better rates
- Offset concerns about utilisation
- Expand the choice of lenders
Applicants with high utilisation often find more flexibility with deposits of 15–25%+.
When High Utilisation Is Most Concerning for Lenders
Lenders may be cautious if:
- Utilisation is rising month-to-month
- Limits are being maximised
- New credit cards have been opened recently
- Minimum payments are being made across multiple cards
- Utilisation is combined with recent missed payments
If the pattern suggests ongoing financial pressure, lenders may require specialist products.
When High Utilisation Matters Less
High utilisation may carry less weight when:
- You have long-term stable income
- Your bank statements show strong conduct
- Payments are made on time
- Utilisation is decreasing
- You have a larger deposit
- The borrowing was for a specific, controlled purpose
Context is key for underwriters.
Is It Better to Reduce the Balances Before Applying?
This is a common question.
While reducing balances can help your overall profile, the right approach varies by applicant.
General considerations (not advice):
- Reducing balances lowers utilisation
- It may improve affordability immediately
- Lenders may see declining balances as positive conduct
- Paying off accounts in full may temporarily reduce your credit score due to system recalibration
Applicants often choose to reduce balances gradually over several months to show stable repayment behaviour.
Do Closed Credit Cards Improve Utilisation?
Closing a card reduces available credit.
This can increase your utilisation percentage if you still have outstanding balances elsewhere.
Example:
- £2,000 balance on £4,000 total limits = 50% utilisation
- Close a £2,000-limit card
- Now £2,000 balance on £2,000 limits = 100% utilisation
This may reduce approval prospects temporarily.
Common Scenarios
Scenario 1: High utilisation but all payments on time
Many lenders may accept, depending on overall affordability.
Scenario 2: High utilisation with recent missed payments
May require specialist lenders.
Scenario 3: High utilisation due to recent unexpected expenses
Underwriters may consider context if bank statement behaviour has stabilised.
Scenario 4: Utilisation reducing steadily over the last 6 months
This is generally viewed positively.
Scenario 5: 100% utilisation across several cards
High street lenders may be cautious; specialist lenders more likely to consider.
How Applicants Strengthen Their Position (General Information Only)
Although this is not advice, many applicants choose to:
- Reduce balances over several months
- Avoid opening new accounts
- Ensure all payments are made on time
- Build a financial buffer in their current account
- Organise documents showing stable income
- Keep spending consistent and controlled
Lenders value predictability and stability.
Summary
A high credit utilisation mortgage application is not automatically unsuccessful. Lenders consider:
- Recent financial behaviour
- Stability of income
- Affordability
- Repayment history
- Deposit size
- Overall credit profile
High utilisation may increase scrutiny and reduce lender choice, but many applicants secure mortgages when the rest of their financial picture is strong.
This article provides general information only. For personalised support, regulated mortgage advice is required.
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Important information: Mortgage Bridge provides information only and acts as a mortgage introducer. We do not provide mortgage advice or make lender recommendations. We can introduce you to an FCA-regulated mortgage adviser who can provide personalised mortgage advice.