complete/exchange in 2 weeks but have used existing cc will this effect me?

tramppercy

Can someone advise/help! My mind is getting better of me and starting to worry about everything that could go wrong with only 2 weeks from completion. I have put 15% deposit down on property with 150k value (currently in holding by my solicitors with exchange of contracts to go through early next week). When I went through application my partners cc was at 500 and mine at 700, this was fine and we were excepted. My mind is now racing as we have both used our cc since, about an additional 1000 across both, we then paid some of it off this week and won't use again, but our current balances are slightly above what they were at time of exception , mine 900 vs 700 previous and my wife's at 800 vs 500 previous. Will this effect us? We have only used them to get a few items for the house and a few other bits while we come up with a large deposit and additional money you need for a house move. Any advice on how it will work. We went through all credit checks to get AIP and obviously this far in have the full mortgage offer signed just exchange and completion to go.
Thanks

betmunch

It wont be a problem if the lender doesnt recheck your application before completion, unfortunately some of them do.

It also wont be a problem if they do check you and decide you can still afford the mortgage, on their calculations.

tramppercy

could it really come down to just that £600 increase in my existing credit? That doesn't sound a great deal, what would happen if they found it tipped me over their calculations, would they give me a chance to explain? Whats the likely hood this could be a problem and they run additional checks?

mlp

Bear in mind the credit card may not update the credit file until after your statement date...and even then it may take a few weeks beyond that.

tramppercy

How do i find out when the statement/credit file date is? If this was an issue could i just provide evidence to the mortgage company that it was paid off? If they see an higher statement which is actually now a lot less? This is all now making me really worried, its only like additional £300 each on mine and my wifes cc's, could this really prevent us?

tramppercy

oh and just to add on last queries, would be better to bring balances down to how they were on agreement? would that help our cause?

anna42hmr

tramppercy wrote: »

How do i find out when the statement/credit file date is?

to find this out see if you can get your free credit report from noddle (call credit) see if the cards in question report to this report and then see the last date the company reported an update to them on the update date

i have found that this date seems to match across the cra's (with the exception of once over a bank holiday when i found one report had the up dated date for a particular card on a friday on one report and the following tuesday on two others)

ps the reason i suggest noddle as its free and you can often get the report the same day as application (unlike some of the others which in some instances post a security code first).

anna42hmr

tramppercy wrote: »

oh and just to add on last queries, would be better to bring balances down to how they were on agreement? would that help our cause?

it could help, but only if the statement has not been issued at the higher amount as yet as generally that seems to be what is reported to the agencies, the debt at the statement date for that month.

tramppercy

Ok so i have an experian account from a month ago and the checks for the CC were done on the 11th of each month, so does that mean they won't be visible with new data till the 11th of this month? If worst case scenario they pulled me up for this additional £600 credit could i just show a latest statement with the new lower balance? I'm literally now worried beyound belief that me, my wife and little girl will be out on the street as our last day in rented property is day after completion!

tramppercy

Can anyone advise some more on queries above? Beyond worried now, bad enough losing a mortgage but to lose a deposit as well that would put myself and my family on street with no money what's so ever to get anywhere else. How do I stop losing a deposit at least?

anna42hmr

tramppercy wrote: »

Can anyone advise some more on queries above? Beyond worried now, bad enough losing a mortgage but to lose a deposit as well that would put myself and my family on street with no money what's so ever to get anywhere else. How do I stop losing a deposit at least?

have you actually exchanged, reading your initial post i assume you have not?

if not i don't think the deposit will be at risk as until exchange both you and other party can end the agreement, from reading above i assume that your sol is holding onto the funds in the meantime so its there to send at point of exchange? if so i understand if you pull out your solicitor can return the funds to you.

with regards to the credit card issue, don't panic so much, if you can afford to clear the extra they do so if it will mean you don't worry as much and if on the small chance they do re-credit check after the report is updated again then you can pass the mortgage lender the copy showing the funds had paid off.

as for the credit report update, from experience all my cards etc have only been updated once a month (though each card seems to be a different date depending on the bank.

i used my credit card for a couple of items whilst waiting to exchange etc and paid the transactions off a couple days later, this was to ensure that i got the section 75 cover for a few items and was not asked by the lender, but had the paperwork in place etc should they ask.