Proof of cleared credit cards for AIP

Bryony84

Morning, hubby and I decided to pull forward our planned move in 2 years time due to the savings currently available on stamp duty. We have a buyer for our property and have found a property we like. We have an AIP from a different lender to the one we are currently with, however are tied in to our current mortgage for another 2 years so would have to pay an early repayment fee so the option of porting and adding extra borrowing to this is our preferred option. Our current bank (Santander) are refusing to lend the full amount based on affordability because credit scoring companies still show the old card balances even though the balances are now 0. Has anyone found an acceptable way to provide proof without having to wait another month for the next statement?

Useful info - combined income £65k, Purchase price £470k, Loan Amount Required £235k, Amount outstanding on current mortgage £170k

thaddy

Depending on who your credit card providers are, Barclaycard can do an interim statement or letter confirming zero balance if you request one. Or you can show the payments from your bank statement into your credit card and the last credit card statements.

Bryony84

Thank you, one is Barclays and one is Tesco. I called Tesco who very abruptly said that they don't offer interim statements and she couldn't help me. Not great customer service! I will try Barclays if they offer them.

kingstreet

Unless repaid some time earlier Santander assumes credit in existence now will continue in the future and will affect affordability. They used to say three months as that is how long its credit search lasts so ideally you would want any credit off there before the AIP.

[Deleted User]

Generally they won't reassess until credit check expires. I thought it waa 59 days but it might be 3 months.

If it is just credit cards rhat are cleared each month and all spending goes on them that are being picked up then an appeal is theoretically possible, if its actually clearing debt then you need to wait for it to be off the credit report (and for the old credit check to expire) before trying again.  

Bryony84

Not in a position to wait as we've sold our house very quickly (4 days!) and had offer accepted on a new house. Our broker said the amount we needed would be fine with Santander as long as the cards were paid off but I presume this was incorrect advice. We also have AIP from NatWest as another option but would need to pay early repayment on our current Santander fix if we go with this option, so sticking with Santander would have been ideal.

adrian84

Bryony84 said:

Morning, hubby and I decided to pull forward our planned move in 2 years time due to the savings currently available on stamp duty. We have a buyer for our property and have found a property we like. We have an AIP from a different lender to the one we are currently with, however are tied in to our current mortgage for another 2 years so would have to pay an early repayment fee so the option of porting and adding extra borrowing to this is our preferred option. Our current bank (Santander) are refusing to lend the full amount based on affordability because credit scoring companies still show the old card balances even though the balances are now 0. Has anyone found an acceptable way to provide proof without having to wait another month for the next statement?

Useful info - combined income £65k, Purchase price £470k, Loan Amount Required £235k, Amount outstanding on current mortgage £170k

I had application with santander in september,  one broker told as  that we can do the application and increase the amount once we can provide statement with balance 0, we ended up using another broker and he used transaction statement to show that we paid the balance in full and it was ok, offer recieved