Paid off debts - won't show on credit file until after mortgage meeting

kitkatm81

Hi
First post, so please be kind. I paid off a lot of debts on Friday, put my house on the market expecting it to take a couple of months and it sold within 24 hours, I have since gained an AIP with HSBC as I already have a mortgage with them and had an offer accepted on a new house. My fear is that my debt repayments and account closures won't show on my credit report until at least 28 days and my appointment for my mortgage app is next week, will this stop me getting the mortgage? can't sleep with worrying!
Thanks

bazzyb

The AIP has been given regardless of the outstanding debts. However I would suggest taking proof of settlement to your meeting so that it can be taken into consideration.

MickeyDaMouse

I had a similar situation with my own finances. I had several things that I paid off literrally in the same week that I applied for a mortgage. There was no way that they were going to show as settled on my credit files before the application and some nearly 3 months on now some of them are still showing at their old balances despite being paid off for nearly 3 months!

I was worried about this too, so I went to a broker. I had been using HSBC for years and never had a problem getting their mortgage products, but I felt a broker would give me a better chance of getting a mortgage.

The broker said I had good affordability, a very good credit file (no missed payments etc.) and decent income. But they agreed that paying off the stuff I had so close to an application being made may be an issue with some lenders. They then referred to a list of lenders who they know wouldn't have a problem with it. They were still high street banks and not specialist firms who charge through the roof, so we still got the same excellent rates that are about today it's just that my broker knew in advance who would accept what. They also told me they had a direct link with these banks and could explain the situation to them rather than just putting an application in as one of their associated brokers.

I produced statements from my accounts that I had paid off and passed them to my broker. I also showed my bank statement where I had made the payments. They took these and sent them to the lender. The underwriter reviewed all these and it was approved.

If you're off to meet the HSBC mortgage team I'd print off all your bank statements, print off your statements from whatever you have paid off and take as much information with you as you can. I also took along a print out of my latest experian and equifax reports. I knew the lender would carry out their own checks, but it helped my broker make a better decision about who to use.

Good luck.

kitkatm81

Did you manage to get a mortgage after that? If yes who with?
Thanks

MickeyDaMouse

Yep. I got a mortgage. With the Clydesdale via a broker.

I think the main bit in all of this was an independent broker. Got us a better deal that wasn't available on the website too. Abd didn't cost us a penny.