Will old cash advances affect a mortgage application?

Jinos

Hello All,

My partner and I are currently renting a house, but hope to buy next year. I sold my house last year, and she will put hers on the market next March.

In June/July I used a credit card to deposit at a gambling site. I made about 20 small deposits in June and also in July, and have now realised they've been reported on my Experian credit record as 'Cash advances'. They were called 'Cash-like transactions' on my Barclaycard statement. Barclaycard say it's Experian who are interpreting them as cash advances, and when I emailed Experian they said 'Unfortunately this is a system discrepancy which I am unable to correct.'

So, it looks like these can't be removed. Will this have a big effect on my mortgage application? The outstanding balance on the card is now zero, on a 7k limit. (And I've stopped playing at gambling sites!)

I'd be looking to borrow about £65k with a deposit of £35k. My partner will pay in cash for their half of the house, from their own house sale. I earn about £38k/year and have no other outstanding debt except for ~5k at 0% on an MBNA card, which I'm looking to reduce substantially or pay off by next March.

Would it help to close the Barclaycard? Would mortgage underwriters worry about cash advances on a closed card from >6 months ago?!

Many thanks in advance
Jinos

amnblog

Stop worrying Jinos. This is unlikely to affect your application.

Just to be clear though, your Partner cannot 'buy their half cash' whilst you 'buy your half' with a mortgage.

You pay £200,000 jointly and put in £135,000 cash.

Your solicitor will help you keep your relative inputs 'safe and separate' if that is what you want.

Jinos

Hi Amnblog,

Thanks so much for your reply.

Do you think it would help to close the Barclaycard though?

And yes, you're right of course about buying together. I'm self-employed so was going to use a broker to help sort out the mortgage and will instruct the solicitor about 'safe and separate' inputs.

Thanks again,
Jinos