How long to wait after repaying debt?

shell88

Hello,

I am hoping to apply for a mortgage later this year, before I apply I will be repaying my overdraft (£1000) and credit card (£850 left to clear) to put me in a better position when I apply.

I was was just curious how long after these were repaid could I apply for a mortgage? My bank statements would obviously show the large repayments, would this be a problem?

Thanks

AnotherJoe

3 months is the standard time they ask for bank statements for.
But in any case paying your overdraft and credit card off is not a problem !!

Smedders11

We had a near identical amount of debt (on CCs though). Paid if off the week before we applied for the mortgage and told our broker who put it down as cleared. Just had to send a statement showing it had been paid off.

amnblog

With most lenders, evidence of repayment will be fine to evidence the debt is no longer there, but not with all lenders.

Allow at least six weeks for it to reflect on the credit file.