How long does it take to update credit file- ie when can I apply for a mortgage?

howstupid

If you get a statement dated 31st of the month (jan) then pay off a credit card in full on 1st of the next month (feb)- would the update on the credit file at the end of that month (feb) show the statement balance at the end of the previous month or the current balance at the time of the update ie zero?

Thrugelmir

Lenders will base their decision on your previous 72 months history. Sudden significant changes will arouse suspicion. If you have repaid the balance then you won't be lying on the application form irrespective of what the credit agencies report. Just make it clear that the account has only recently been cleared.

howstupid

Thank for the reply.

My debt was significant (£40k) but it's all now gone and we can more than afford the mortgage we want with a 15% deposit (mortgage calculators show we could potentially borrow £100k more than we need)

I just don't want to apply and get rejected as my credit file hasn't cleared but we've seen a house we like..........

amnblog

You would enter the debt on the mortgage application as still in force and to be repaid.

The only thing you have to watch is that some (but not most) lenders could the debt as not being cleared if it is currently showing on the file.

howstupid

I was looking on the Nationwide site and it specified that the only debts to disclose where those being paid once the mortgage started so I figured I would put zero as that is the current ( and future) balance.

I'm just stressing now as I've cleared everything and we would like to make an application ASAP.

Are there lenders out there who won't frown too much on recent large but settled debts- there are no late payments at all.

amnblog

If you don't want to be stressing don't try to sort this yourself. Use a mortgage broker.

howstupid

How do you find a good one?

I spoke to someone at London and Country but they sounded very generic and friends and family can't help either.

howstupid

Meant to add- based on previous experiences- Is it achieveable given the facts?

Mortgage required £277k over 14 years
Joint income £93k plus £12k bonus
No dependants
15% deposit

Only blemish is the £40k debt just paid off and the limited term but the payment history is fine.

amnblog

Unbiased.com lists brokers. Turn off the sponsored search only option.

An initial telephone conversation should give you a good view if the broker seems to understand your position.

If you want some tips for selecting a broker we have a page dedicated to this on our website. PM me and I will send you a link.