Mortgage Application with Recently Paid Credit Card Debts

CraftyTwinkle

Hi,

We have just agreed to purchase a new build property and were given an AIP for the full amount needed. Now we need to go ahead with the mortgage application, however I'm feeling a bit nervous. I've just recently (over the last couple of weeks since it has become clear that we may actually be purchasing a house) paid off my rather large credit card debts. The thing is, I have had the money available to pay them off but instead decided to keep the money in high(ish) interest accounts since they were on very long 0% deals.
We are now in the very fortunate position that my parents have gifted us the rest of our deposit, where we thought that it would be another year or so before we were ready to buy.
But now I'm really worried that I have scuppered our chances of getting a mortgage at this point in time because I've left it so late to pay off the cards... Just to be clear, I haven't ever had a late or missed payment, just fairly high balances (just above my annual income).
Is there anyone that can reassure me that it'll all be fine? We're using a broker.

Thanks

Nebulous2

No-one knows if it will be fine, because we don't know all your circumstances. Using a broker and your AIP certainly suggest it will be though.

I had a large debt on 0% circa £30k. I'm in the process of remortgaging, went to Nationwide and informally asked what I needed to do. He told me I needed to bring it down in time to make sure the new balance was showing on my credit files. If I applied and declared a balance which was below what they found with a credit check I would be turned down and have to appeal, giving evidence of my balances.

I paid them off, waited over a month and paid for 3 £2 statutory reports from Equifax until the reduced balances were showing. I then got a DIP followed by a full application very soon after with no problems. I'd probably have been okay earlier, but I didn't want the hassle of appealing when I could wait for the reduced balances to be declared and showing.

I find most credit cards report and appear within a month of making an additional payment. The one exception for me is TSB, which I cleared in full. It seems to lag almost a month behind the rest of mine.

GoingOn30

If you've only just agreed the purchase can you wait a week or 2 to submit the full application whilst you/your broker seeks advice from the proposed lender?

amnblog

CraftyTwinkle wrote: »

Is there anyone that can reassure me that it'll all be fine? We're using a broker.

I think you have answered your own question.