paying off debts how long to change on credit report?

deb788

Hi . I wondered if anyone knew how long a paid off loan takes to show on your credit report?

my partner and i are applying for a morgage soon , we have obtained our credit reports and checked them and we have also paid off most of our debts prior to the application .

we thought we would have a few months before the actual application because the house is a new build and hadnt been released howvever the dates have altered and our application will now be early may .

I just wondered if the lender will be able to see that those debts have been cleared ?

deb788

Also if anyone has any advice on how likely we are to get accepted ?

our incomes are 29k and 15k the house is 177000

deposit would be 5% put in by us and 5% put in by builder

so morgage would be approx 160000

like i said we have paid off most of our debts all we have remaining is our car , and a credit card with £1000 debt

Thrugelmir

Clear the remaining debt. With the level of mortgage you require you ideally need to be debt free.

Also draw yourselves up a budget. With a mortgage of that size you may find a 2% to 3% increase in mortgage rates will stretch your finances.

Here's a link you may find useful.

http://www.makesenseofcards.com/soacalc.html

MiniSis

I paid 2 credit cards off on 16th march. One is showing satisfied, the other still shows with the outstanding balance. If you hae the statements then the lender may accept these as proof (I say may as Santander still wanted to take an 8k cc debt into account when my latest statement showed I was £64 in credit)

Dave_Ham

Do not worry about the debt showing on your report, well for most banks accept Santander for some reason!

Most banks will accept you telling them this is done and to be repaid before mortgage starts. They may ask the solicitor to verify this.

Numbers are tight ish, although check new build criteria at these LTV levels, unless you are after the Newbuy scheme.

Sure the onsite mortgage broker will have a good handle on options...

Good luck

leereni

The length of time it takes for payments to reflect on your credit report differs. The experian site tells you lenders update accounts every month, however we know that's not always true. From experience, if you have an account and call experian they may contact the lender for you and get them to update it. I seem to remember they do this after the account is 6 weeks out of date.

Thehighlander_2

We has this issue recently.

My partner paid her debt off in November but Experian had not updated her credit file, she called them last week and within 48hrs it was updated.