Credit card balance during mortgage application

ddvilanova

My credit card balance has went up around 1000 over the last month due to waiting on an invoice being paid by a client.

Unfortunately the timing is bad as I am currently going through a mortgage application with a dip in place and a final check to be completed next week.

My question is that if I pay the balance off in full now, when the full credit check is completed at the final application stage, what will the mortgage company see? Will they see the balance as it was last reported to the credit reference agency (1 week ago), or the settled balance as of now?

hazyjo

I'd be a bit nervous that one person paying you late has made you a grand overdrawn. Was it a massive amount the client owed?! That would be a bit more understandable.


Have they asked you yet what's the most you've been overdrawn in the last 3 months (or similar line of questioning)? I take it the provisional offer was not given against the property you're now buying, but was just when you were viewing generally?


Jx

Oakdene

The lender may stipulate that the balance has to be cleared before they release the funds, that's what Natwest did with me. I had a balance of £2100 which I had to show was clear before they released funds to my solicitor.

dc197

I was only asked my average balance and whether I pay it off in full each month.
My average closing balance is more than your £1K. I pay it off in full.
I think they wanted to see three months' credit card statements, but that's it.

Remember, they are not usually looking for exceptional purchases, they are looking for habitual/lifestyle recurring commitments. Things like £500 a month to a bingo website, £600 a month alimony, £300 student loan.... etc.