Mortgage and credit card help

dtr2911

My partner and i have split. We will be selling our house and sharing out the money, i will need to get a new mortgage to buy a small property for myself but i have credit cards that i would clear from the sale of the marital property. Are they classed as repaid before the new mortgage is taken on if it all happens in the same day? Technically the actual cards probably wouldnt be repaid until a couple of days later.... any help or guidance would be appreciated as it hits the amount that i can borrow if i include them as not repaid. 

[Deleted User]

If you're planning to clear the cards, you'd mark them as "to be paid". If lender then queries it, you'd explain that it's from equity. It'd then be obvious that they wouldn't be 'cleared' until a few days later.

Only a very picky lender would pull you up for that - they either believe you're going to repay the debts, or they don't. A few days either way won't make a difference to your ability to afford the mortgage payments. 

I'd mark them as "to be paid by completion" and that should give you accurate affordability answers. Do note that certain lenders will apply restrictions if the debts are currently too big (based on your salary/net income etc.). That's not always clear at calculation stage - only at DIP/Application. It's always worth speaking to a broker, but if the debts are unusually large, it's certainly worth speaking to one.