Refinancing debt... how would this work?

Sheep

My wife and I are looking to buy a new build.

Between us we had small amounts of debt all over the place. This month we decided to consolidate everything into one payment each.

The loan momey has just been laid into our account and the debts have all been cleared today.

We have been in the process of doing this.for 3 weeks and never intended to move home until a new development has just opened and we love it.

We spome to the sales lady and she is happy for us to reserve a plot and they want to exchange in 28 days.

My concern is that the new debt and the old debt may show on our credit files as I know it takes time to update. Can anyone advise how this works? Do i disclose only the new loan in each of our names?

Thrugelmir

Simply disclose what you currently owe on the mortgage application form.

While developers ask for 28 day exchange. It very rarely happens. Don't concern yourselves if matters drift.

Sheep

Thank you. Is it likely that the underwritters may see more debt though? As in the debts that were cleared?

kingstreet

Yes. Chances are the old commitments and the new one will be visible on your credit file.

We would simply enter those already repaid in the "to be repaid on completion" box and anything to continue would be noted as such.

The credit system does not work in real time and delays of upto three months between things being repaid and them being visible as such are normal.