Mortgage concern.

wkitching

Evening Folks,

Myself and my Partner have recently applied for a mortgage. Prior to this i paid off 2k which was on my credit card. However, there is a possibility that my credit report has not been updated since. Hence i am concerned that the lender will presume i have lied as i stated within my application that i have no debts. Which i haven't.

Anyone got any advice!?

Thank you. Wayne

kingstreet

It is not necessary to pay off credit before you apply.

It is better to set out the details of the existing credit on the application and tick the box to indicate the credit will be repaid on, or before completion.

At worst, you may be asked about this undisclosed credit, if you didn't put it on the form. Then you can deal with the issue.

wkitching

As stated. I paid off the debt which was always my intention prior to purchasing a property. However, my wife spotted a house and she got the ball rolling fast, and i mean fast.. No stopping a women when she see's her dream home!

When i did my credit report it still showed the existing credit and i thought that if the lender see's that they will think i have lied and am trying to avoid unneed complications.

thank you.

kingstreet

As I said, a lender would be happy to see a commitment will be paid off on, or before, completion. As the process takes several months, it isn't necessary to pay something off before you apply. In fact, it appears to have confused you into not mentioning the commitment on your application.

It's worth bearing in mind for future readers, having a credit card with a nil balance means the "commitment" should still be shown on an application as the agreement will be viewable by lenders carrying out a credit search. It's fair to say one or two lenders, notably Yorkshire Building Society, will sometimes insist a nil balance card be closed altogether.

In this instance, £2k is a smallish amount and unlikely to cause a major problem. The OP may be required to provide evidence of the payment in return for not having disclosed the arrangement was in existence on the application.

It should not however, be a reason for an application to be declined.

MiniSis

I've had this as experian hasn't updated still. Lender wanted to take it into account (new rules apparently erm though it's paid was declared and ticked the box to say paid off by completion) they were about to decline me on affordability but with persuasion accepted the cc statement showing tb nil balance.