Paying of credit card a couple of days before mortgage

shakey999

I have 3 creditcards, one with 0 balance, one with 200 balance and a 0% one with £900 balance.

I've paid off the one with 200 now. Will it make a difference to my application if I pay off the credit card a couple of days before I apply for the Mortgage. Will the lenders know that I've paid it off? The reason I ask is because I just checked my equifax report and it has updated this months record for that particular credit card already.

I've got about 8k available credit at the moment and am £900 owed to Tesco credit card. Should I pay it all off?

Tixy

Unlikely it would update on your credit report in those 2 days.

I would think a £900 debt is unlikely to be a deal breaker on a mortgage.

But if you can afford to pay it off then it certainly won't hurt to.

Will you be planning to keep the balances at zero all the way through to completion? as they'll credit search you again then.

kingstreet

Put the balance as it was on the application and tick the "to be repaid on or before completion" box and the balance will be ignored for affordability purposes.

Do not fail to disclose it, as this is worse than having the credit in the first place.

sinbad182

shakey999 wrote: »

I have 3 creditcards, one with 0 balance, one with 200 balance and a 0% one with £900 balance.

I've paid off the one with 200 now. Will it make a difference to my application if I pay off the credit card a couple of days before I apply for the Mortgage. Will the lenders know that I've paid it off? The reason I ask is because I just checked my equifax report and it has updated this months record for that particular credit card already.

I've got about 8k available credit at the moment and am £900 owed to Tesco credit card. Should I pay it all off?

If your credit score and affordability check out ok, your £1100 credit card balances won't make a blind bit of difference to your application.