Paying off a loan before applying for a mortgage

ktbainbridge

I am about to apply for a mortgage, so I used some savings to settle a £5,000 car loan from Tesco. It had a high monthly repayment (£430) so I was worried it would scare some lenders off. I asked Tesco how long it would take to show as settled, and they said they report to the credit agency once a month but didn't know when (!). I only settled it a couple of days ago, and it was by cheque and I want to make my mortgage application this week (as not to lose the dream house). Is there anyway of changing the application process to show the loans been paid off even if the credit check shows it isnt yet (just because it hasnt been updated yet). Thanks for any advice!!

catieeb06

Your mortgage adviser or broker will go through your income and outgoings with you- they will need to know about this, even though it has been paid off- that way when they run through a Decision In Principle they can take the necessary steps to make sure that the lender needs to disregard it.

They may request proof that it's been paid off so it might be worth getting a letter from Tesco to confirm that this has taken place.

kingstreet

You didn't need to pay it off beforehand. Simply indicating the commitment would be repaid before the completion of the new mortgage would have ensured it was omittted from the affordability calculations.

aliasojo

Deja vu anyone?

(Comments aimed at spammer not the OP.)

NeverInDebt

lezhitianxia :spam:mer

ktbainbridge

Thanks to those that have been helpful. I've actually carried out a search of the website and couldn't find that anyone had asked a similar question.

callmechar

My partner had a loan which he repaid before we apply for the mortgage, give us the best possible chance before mortgaged

kingstreet

ktbainbridge wrote: »

Thanks to those that have been helpful. I've actually carried out a search of the website and couldn't find that anyone had asked a similar question.

The spam posts refer to a post which has now been removed, not to yours.

aliasojo

ktbainbridge wrote: »

Thanks to those that have been helpful. I've actually carried out a search of the website and couldn't find that anyone had asked a similar question.

Apologies if you thought my comment was aimed at you. It was to the post that was directly above mine which I reported and has obviously now been deleted.

ktbainbridge

Thank you. The application is with the underwriters at the moment. They haven't asked anything yet but I'm going to ring Tesco tomorrow and ask for proof again (the first time I rang them they said there was a back log so my cheque hadn't been cashed yet- how frustrating!) I will ask them to send something to me then I can forward it to Natwest if asked. Right?!

Thanks again people X