Debt showing on bank statements and not credit file

scotgal30

I currently pay £20 a week to clear an old debt to a collections company. The debt will be cleared by 8th January 2019 so less than £350 left to pay.

When applying for my mortgage in 3 weeks time I will declare this debt as they will see the outgoings on my statement (its not registered with the CRA). Will the mortgage company ask for proof of the outstanding balance or take my word for it?

I should probably just pay it off in a lump sum, I have the money there, it just looks better sitting in our savings - do you advise i do this? And if I do would I still need confirmation that balance is cleared?

Thanks

Thrugelmir

For £350 I'd pay it off. How much interest are you going to lose by doing so? Very little.

LucasH

scotgal30 wrote: »

I currently pay £20 a week to clear an old debt to a collections company. The debt will be cleared by 8th January 2019 so less than £350 left to pay.

When applying for my mortgage in 3 weeks time I will declare this debt as they will see the outgoings on my statement (its not registered with the CRA). Will the mortgage company ask for proof of the outstanding balance or take my word for it?

I should probably just pay it off in a lump sum, I have the money there, it just looks better sitting in our savings - do you advise i do this? And if I do would I still need confirmation that balance is cleared?

Thanks

More than likely the lender will ask for 3 month bank statements so will see this debt if you pay it off or not.
I would pay it off and get a letter to show its been paid off and supply that to your potential lender.

Personally i think it would look odd if you have a reasonably small debt that you arent paying off in full despite having the money there. Especially when going for a mortgage.

scotgal30

I agree, thank you for your responses. Will contact them to pay in full and ask for a copy of confirmation.