Pay off credit card before apply mortgage

Amandalovesshopping

Hi I'd appreciate some advice please , we have about 20,000 credit card debt mainly built up refurbing a home which has now been valued at 30,000 more than we paid for it in two years. We have the opportunity next week to clear this with a company bonus and will do it as soon as its in the bank. We now want to move and have found a property which will require no increase in mortgage. Our lender said dont worry about paying off before applying as they will factor that into the offer, but I am concerned that this debt will maybe even prevent them offering in first place .? How soon after we've paid them off will it show. Thanks

betmunch

Depends on the lender.

Some will allow you to pay it off on completion of the new mortgage.

Some will take it as an ongoing commitment even if its paid off! (theory is you will just run up the credit cards again)

dimbo61

Have you got proof ? credit card bills for new kitchen/bathroom/ building materials ?
It may help but I would pay of the CC debt now If you can