Credit card used for expenses - effect on application?

bclark

I don't have any real credit card debt, or any unsecured debt, so thinking this would all be great for my mortgage application when I move. I do have a credit card that I use for work expenses though that adds up to about £500-1000 a month that I clear when I get paid.

The problem is that often because of the lag in getting paid one months expenses I have started to accrue the next months by the time I pay it off and it means I often have a few hundred quid on the balance at any time, although obviously it's money that's coming back to me in a few weeks.

How is the mortgage company likely to view this?

hcb42

I wouldnt see it as a major problem if everything else stacks up.

GMS

If it is to be repaid on completion then state as this.

Will a balance of £1000 mean failing affordability? Is the proposed borrowing that tight?

bclark

GMS wrote: »

If it is to be repaid on completion then state as this.

Will a balance of £1000 mean failing affordability? Is the proposed borrowing that tight?

No it's not really tight at all tbh but I wasn't sure how they look at things.

GMS

Despite the fact that the card is repaid by your employer the debt is yours. Therefore you will need to declare it if it is to remain or pay it on completion.

I would suggest you declare it if there is a chance it wouldn't be repaid on completion day. That way you can have no issues. If you say it is paid and the lender were to check and it isn't it could cause problems.

If it doesn't affect your application I would suggest a 'worst case scenario' type of approach