Santander - Revolving Credit Card Balances

Alarae

We will be going with Santander via a broker, but just had a random thought which just coincides with the weekend when they don't work!

I use my credit card and pay it off in full each month. With our last lender, Nationwide, they simply made it a condition that all cards were paid off at completion. With Santander, I can see it asks for your credit balance regardless if they will be paid off- does that mean it will affect our affordability?

Just wondering if I need to pay everything off now and use my debit card going forward, so that we are at a complete zero balance before our full application goes in.

YHM

If you use a Credit Card as a revolving debt i.e. you build it up, you clear it straight away / within the given month, then these will not be factored into affordability.

Alarae

Thank you! Put my mind at ease.

It doesn't bother me to stop using it but I like the rewards my credit card gives, no matter how small!

amnblog

Not correct.

Santander will factor in any debts on the credit file against your affordability regardless of whether you are going to pay it off before completion.

Hopefully the Broker has already considered this.

YHM

Granted, oversight on my part in terms of Santander being the way they are.

However, I would assume that as its a revolving debt, the liability is never significant enough to significantly impact upon an affordability assessment.