Cleared Debts before Applying for Mortgage

harding1985

Evening all,

Quick Q, how long should I leave the credit files to update themselves before I push on and apply for a mortgage?

I was thinking 4 weeks?

Thanks

Thrugelmir

What matters is your past 6 years history not the last 4 weeks.

harding1985

Thrugelmir wrote: »

What matters is your past 6 years history not the last 4 weeks.

History is not a problem, my Credit Rating is spot on.

Now how long does it take to show my debts have been cleared?

nottoolate

if the creditors sent monthly updates as they should then at least one month. maybe 2 to cover yourself

kingstreet

You are not required to clear commitments before applying. It is sufficient to note them and tick the "to be repaid on, or before completion" box to show they should be excluded from affordability.

As none of us know when your creditors may update their systems, it would be sensible to do this, even when they have been repaid already to be on the safe side.

This avoids any suggestion of undisclosed credit.

FWIW, if using Santander you should wait at least three months between repaying credit commitments and applying for a mortgage as it will not ignore any commitment active in that period. Even if you pay it off, Santander will assume it will be re-drawn after completion, if repayment is less than three months earlier.