How long after paying off cc before applying for mortgage

moneysaver12

Hi me and my husband are looking to buy a house. Three weeks ago my husband put an offer in on a house which was accepted. He applied to satander directly for a sole mortgage. Because of debts they would only offer him 139, and we need 160.

Husband then went to a estate agent mortgage advisor two week ago tomorrow. Mortgage advisor said that my husband needed to clear his debts and when he got a wage slip with his quartley bonus on to email it to him.

Husband has now cleared off the debts from a catalogue and two credit cards. They were cleared last week, but still showing on credit file.

Last friday he emailed his wage slip to the mortgage advisor. After my husband chased mortgage advisor up today, he said with cc outstanding husband could get 135 and with cc cleared 169. Mortgage advisor hasn't said who these amounts are with. Husband has emailed back to say that he has cleared cc.

How long after clearning debts can you apply for a mortgage and is my husband just better off applying directly. Is it normal for the mortgage advisor to take two days to get some figures. Its not even a mortgage in principle.

ACG

The credit card isnt outstanding...find a new broker, this one sounds inexperienced or too busy.

You can tick a box with most lenders to say it will be cleared by completion.

SavingSteve

Go to a whole of market broker, never use an estate agent broker

amnblog

ACG wrote: »

You can tick a box with most lenders to say it will be cleared by completion.

You missed it ACG.


The Poster mentions Santander who are unique in considering all unsecured debts not be discharged on completion regardless of whether you say they will or not.


Santander will need the debts to be off of the credit file and therefore off of the application - other lenders will not.


As ACG says, the broker does not sound like he/she is serving you very well. Approach another.

ACG

amnblog wrote: »

You missed it ACG.


The Poster mentions Santander who are unique in considering all unsecured debts not be discharged on completion regardless of whether you say they will or not.

I was thinking there would be other options that would mean they do not need to wait...assuming this is the only issue.

It seems odd that the broker in question is committed to waiting for Santander when there are probably other options available now.

kingstreet

You can't realistically wait for Santander.

They work on a three month cycle, so you have to leave three months between DIPs, otherwise the first credit search result will apply.

The speed the credit system updates, it's a good job most lenders accept "will be repaid on or before completion" as paying off something today might well not feature on a credit file for three months or more...

ShivasPlace

Out of interest, how do the lenders check that a balance has been cleared by completion? Is it something the solicitors handle?

Edit: (Conincidently) Just seen the answer to this question in another thread!

moneysaver12

Thank you for your replies. My husband went directly to satandar and when he couldn't get enough. He went to a mortgage advisor and cancelled the dip. The mortgage advisor still hasn't told my husband who is offering the most on the affordability calculator. My husband has chased him up but still no answer so not even got a dip with anyone .

Husband has reapplied to satandar directly today and got a dip. Does this mean they will use the same credit check they used a couple of weeks ago and we wont be able to get enough.

Husband is limited due to his age. He is 48 next month. Satandar will do a 25 year mortgage. Also nationwide is an option as they will do 22 years.

ACG

Santander wont lend you what you need until your credit report has updated but you have gone back to them prior to it updating?

You are potentially causing yourself a lot of problems, having too many credit checks can affect your credit score.

moneysaver12

Hi husband has gone back to them before updating. I have told him about they will still take the debts into account. MA finally emailed him back saying until credit file is clear then he will fail on affordability.

But he has not offered any other suggestions apart from wait till credit file is clear.

Can husband apply to nationwide instead of waiting for files to be clear.

kingstreet

moneysaver12 wrote: »

Husband has reapplied to satandar directly today and got a dip. Does this mean they will use the same credit check they used a couple of weeks ago and we wont be able to get enough

Yes. They will only ignore credit commitments they can no longer see. Anything on your credit file today they will take into account for affordability for three months, even if you say you will pay it off.

Husband is limited due to his age. He is 48 next month. Satandar will do a 25 year mortgage. Also nationwide is an option as they will do 22 years.

Get a decent broker who knows his a*se from his elbow. This should be straightforward and not the nightmare going direct/to a clown has made it.