Mortgage app once debt is repaid - do we have to wait for credit report to update?

mm1982

My partner and I hope to apply for a mortgage when our current apartment sells next month. We're waiting until the sale goes through because equity from our current property will pay off our credit cards.

Our credit report won't show the repaid debt for at least a month (probably longer knowing one of my cards) so my question is will providing receipts showing full payment be acceptable to the bank we apply to? Do we have to wait until our credit report updates before we apply for a mortgage?

Rather than going direct, would a mortgage broker/IFA be likely to help us by speaking with the banks beforehand and explaining that our debts are repaid but it is not yet showing on the credit report.

Thanks

kingstreet

You don't need to wait. Having credit is fine, as long as it's well maintained. Mortgage applications have a section which asks you to list your credit, then there's a little box which says "tick if to be repaid before completion" and if you do that, it will be excluded from the affordability calculation.

The repayment of the commitments may be added to your mortgage as a condition if you say you're going to do it.