Mortgage and credit card

nnppaa

Hello

We are about to do a mortgage application in the next couple of days for myself and my partner. My partner has a credit card balance of £1000. Should I pay this off before doing the application? Or will it not update on the credit file in time?

Thanks

ACG

It wouldnt update on the credit file in a couple of days - i used to work for RBS credit cards and they updated it at the end of each month.

But you would probably get a statement sooner showing it paid off.

As to whether it matters that depends on the figures involved with your income and mortgage.

nnppaa

property price is 112,000 and we have 20% deposit, so mortgage for 89600. We both have incomes of about 17k each, and the mortgage would work out about 420 per month.
I just suddenly thought about the card and didn't know whether to pay if off now if it wasn't going to update on the file for some time.

ACG

I wouldnt worry about it. Affordability wise if you only have a credit card with a grand on you are well within what lenders will allow.

Thrugelmir

Santander last week announced that all existing credit balances would be taken into account. So allow at least 3 months should be allowed after settling the account to show a clear history. As Santander are taking the view that a borrower is highly likely to reborrow the money after effecting the mortgage.

Other mainstream lenders may well take a similar view.