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Mortgage help!! Credit cards on credit file
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Starcity
Posts: 2 Newbie
Hi everyone,
I need a little advice! We're going out of our minds!
We are applying for a mortgage, before we did we worked hard and paid all credit debts, they are all now at 0. However our credit reports haven't updated and lenders seem to be struggling to understand this! Yes they are showing up but they are paid off. We can provide proof! Different agencies update at different times and we can't really wait to make the application. Lenders are saying we must declare the balances as per the credit report but technically there aren't any and they are lowering our loan amount and affordability because of the "balances". It's so frustrating, we seem to be being punished for actually paying everything off in readiness.
Has anyone else had anything similar?
Thanks
I need a little advice! We're going out of our minds!
We are applying for a mortgage, before we did we worked hard and paid all credit debts, they are all now at 0. However our credit reports haven't updated and lenders seem to be struggling to understand this! Yes they are showing up but they are paid off. We can provide proof! Different agencies update at different times and we can't really wait to make the application. Lenders are saying we must declare the balances as per the credit report but technically there aren't any and they are lowering our loan amount and affordability because of the "balances". It's so frustrating, we seem to be being punished for actually paying everything off in readiness.
Has anyone else had anything similar?
Thanks
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Comments
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Experian normally updates all our balances monthly. Noddle is always around two months behind. Which agencies are you checking?0
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I've checked experian. One is off and the others are still there as they were paid recently. We thought we were doing the right thing paying them off but it seems we should have held the money in savings, declared them and agreed to pay them off before the mortgage started.
I'm hoping that the broker can explain this to them and they will accept it.0 -
Which bank are you struggling with?
We had an offer from Nationwide and they were fine with this - it's just stipulated in our offer that it will be paid off before or no completion.0 -
Regardless of what has taken place in the last month, we always enter the highest balance which has applied in the last three months and note it to be repaid on completion.
We avoid "lag" headaches that way and don't have to second guess what the lender can or can't see.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I pretty much agree with Kingstreet. I put the balances as they appear on the credit reports and then tick to say it will be cleared by completion.
In the main this works, however some lenders will not lend where you have a high "debt to income" ratio. this varies from lender to lender and tends to kick in at around 50% of income. So if your combined income is £40k but you have £20k in debt, thats 50% debt to income. If you have something similar with a lender who falls in to this category, you may have no option but to wait until it updates or find a new lender.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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