Applying for mortgage with recently paid off debt

shopaholicno1

I recently (a week ago) cleared my next account balance to £0 from
£600
However, as it's so recent it's still showing on my credit file at £1400, which is what the balance stood at 5 weeks ago now.

We have seen a house, and want to apply for a mortgage. Can my mortgage broker inform a lender the debt has been recently paid? Do I need to state I do have a debt even though it is paid off on the forms when applying?

SharkBite

Depends on the lender I think. Most have an option stating the debt will be / has been settled.

I recently had this when I applied with Natwest. I included debts on the application even though I had settled them. But I was able to tick a box saying they will be repaid before completion.

They didn't query anything and my settled accounts were much larger than £600.

The main thing is the affordability model each lender uses.

I'm in no way an expert BTW just talking from recent experience.

juniordoc

You don't need to apply for a mortgage until your offer has been accepted. A premature application will show up on your credit file. If your seller also has to find somewhere to buy then there may be no point sending off your application for a couple of weeks yet.
When you do get round to sending off the application, as above mention that these debts are recently settled.