When to pay off credit card debt - bank statement clear

richy4

I'm keeping my next few months back statements 'clean' and just being very conservative in what I buy and keeping to a strict budget.

I've got a credit card balance of £2500 on a 0% card. I am just worried if this will look better to be totally paid off at the time of application or whether it is 'OK' to just keep this debt and say that I am going to pay it off before completion?

In paying the debt off now, I'm worried the lender will consider this a 'monthly payment' when in fact it is obviously totally one-off and the card will then be empty, I won't cancel it till I get my mortgage offer or later...

In a similar issue, I'd like to continue saving at least £1000-1500 a month and transferring this to a separate savings account. If I continue to do this, obviously the transaction will show on my bank statements as a 'regular' saving. Is this OK? It's not an outgoing but then on the bank statement it will just look like one!

What are other people's experiences?

Thrugelmir

Debt is debt. Cash is cash. How you clear it will be of no interest to the mortgage lender. Nor in general terms how you manage your money if you do so in a responsible manner.

richy4

So having credit card debt is ok on application as long as you pay it back before completion? It doesn't affect affordability calculations?