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Clearing debt 'on completion'
BristolExile
Posts: 35 Forumite
Afternoon forumites
We are hoping to move house at some point in the next few months and will be clearing around £10k of credit card debt on completion of the new mortgage.
When trying the 'how much can i borrow' calculators, some lenders say you do not include this debt in the calculations whilst others make no mention.
Do some lenders really not take this soon to be cleared debt into consideration when determining how much applicants can borrow? After all, if the debt will definately be cleared when the new mortgage starts then is it really debt that needs to be declared?
We are hoping to move house at some point in the next few months and will be clearing around £10k of credit card debt on completion of the new mortgage.
When trying the 'how much can i borrow' calculators, some lenders say you do not include this debt in the calculations whilst others make no mention.
Do some lenders really not take this soon to be cleared debt into consideration when determining how much applicants can borrow? After all, if the debt will definately be cleared when the new mortgage starts then is it really debt that needs to be declared?
0
Comments
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Most lenders ignore commitments which will be paid off within six months, or which you promise to clear on, or before, completion.
Only Abbey/Santander holds such credit against you, assuming once repaid you will simply run it up all over again, so it taxes your affordability with the cost.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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