Agreement in Principle & Credit Card Stoozing

Norwooder

Flat going on the market shortly and beginning to think about finance for a house purchase (which will involve obtaining additional mortgage finance). Currently have a reasonable amount (£5k-£10k) on a purchases card on a 0% deal which has another year to run. At the time I do the formal mortgage application process I will clear the credit card with existing cash savings. Two questions:

- Is it fraudulent / problematic to state that I have no / minimal credit card debt when obtaining a decision in principle (on the basis of nil net debt and intention to repay in full prior to formal application)?

- How long before starting the full application should I pay off the credit card, to be sure that it will update when searches are run by the bank?

Thank you

new_owner

I was in a similar situation when getting my mortgage a few weeks ago. I just showed them that the money to repay the card was sitting in an account and it could be paid off at any time.

They required this due to me wanting to borrow a 5x multiplier which I did and sent them proof the card was at zero.
It made no difference to me getting the mortgage all be it took a smidge longer having to post my card statement.

Thrugelmir

Norwooder wrote: »

- Is it fraudulent / problematic to state that I have no / minimal credit card debt when obtaining a decision in principle (on the basis of nil net debt and intention to repay in full prior to formal application)?

A DIP is not an application. Nor is it a formal offer to lend. Though the debt potentially could influence the DIP when it is prepared. The lender will have set internal policies, your word will have no bearing.