Cleared CC balance still showing on credit report... will this affect mortgage?

evieeve

As the title suggests, I paid off two credit card balances (about £400 each) a few of weeks ago. I told my mortgage adviser about them and he said not to worry and nationwide will see its been paid on their report, and as a result he didn't declare these in my mortgage application as outstanding/to be paid before completion etc.

However I've had a look today on experian and they are still showing as they haven't updated on there yet! Could this affect the mortgage offer? We're nowhere near the maximum we could have borrowed, and nationwide have only asked us for 1 payslip each and our current mortgage statement.

Valuaton was carried out on wednesday and we haven't heard back yet, just getting worried about everything whilst waiting!

kingstreet

I would have put them on the application and marked them "to be repaid on or before completion" as they will be visible on your credit file until they are updated.

If Nationwide had a problem with them, you'd probably have been notified by now, although if it was my case I would have done a "material change form" and uploaded it to the case to ensure it was properly documented, if I missed it at the outset.

evieeve

I had hoped our advisor would have made mention of it in the case notes just incase..!
The full application was submitted Sunday afternoon, we had already passed the credit check the week previous. I have my recent statements to prove the balance is cleared if they ask for it, I'm just concerned they would reject the mortgage without asking about them before hand if they do further checks.

amnblog

I cannot see them rejecting the mortgage over this but Kingstreet's approach is the recognised best option.

Put them on the application and mark them to be repaid.

dgtazzman

Just had a call from our IFA about the same thing today. He asked me to go over all our current CC's and their balances so he could disclose them to Nationwide, with the remark they would be cleared before completion. As he said, better to go out from 'worst case' when applying, then things can only get better...

kingstreet

If they find credit on your file and there's nothing on the application to indicate there's anything outstanding, they reduce the maximum borrowing at DIP and at full app, you get questions about "undisclosed credit."

We had one recently. Our client had paid off the existing credit about three weeks ago, so put "nil" on our data capture form. When I did the DIP, the output was a "refer".

When that happens, we ask the applicant if they can think of any reason why that should be the case and lo and behold, we then find £30k of credit was paid off a few weeks ago.

We amend the DIP and it's fine, but having had a "refer" decision, every time a piece of data is received, the case status goes back to refer again.

Now, that is annoying, because it takes an extra day to get it resolved.

amnblog

There's the view Evieeve

Declare everything, even recently paid off stuff.

If you don't declare a small amount it might delay things but wont tip the whole cart over.