More credit card usage before exchange

hue2345

Hi all,

I have got a mortgage offer and my exchange will happen next week Friday and completion week after in March.

I have been utilising my credit card around 4-8% for the last year or so and have been paying on time. However, while nearing to exchange, I have utilised nearly 90% of the credit card for this statement period.

I am financially comfortable to clear the balance after completion.

Do you think this can have impact on the mortgage loan in any way after exchange? Do lenders run another check after exchange?

I don’t consider this as a change of circumstances but do you think I should reveal this to the lender before exchange to make sure?

penners324

Lenders sometimes redo the credit search and affordability.

If you can clear the debt before that happens then you should.

amnblog

You have increased your outstanding debt since application. Therefore it can affect your case depending on how clear you are on affordability and credit score. The lender will be aware via credit searches.

SuseOrm

Even if you clear that balance today some credit cards take between four and six weeks to appear clear on your credit report I fell foul of that before Christmas

Vortex566

SuseOrm said:

Even if you clear that balance today some credit cards take between four and six weeks to appear clear on your credit report I fell foul of that before Christmas

What happened?

Vortex566

What’s the balance of the CC? 

hue2345

Vortex566 said:

What’s the balance of the CC? 

Around 2k

hue2345

amnblog said:

You have increased your outstanding debt since application. Therefore it can affect your case depending on how clear you are on affordability and credit score. The lender will be aware via credit searches.

Thanks! If it fits into affordability, would it cause any issues?

Noneforit999

hue2345 said:

amnblog said:

You have increased your outstanding debt since application. Therefore it can affect your case depending on how clear you are on affordability and credit score. The lender will be aware via credit searches.

Thanks! If it fits into affordability, would it cause any issues?

Probably not but its impossible to know for sure as each lender has different criteria.

We use a credit card for virtually everything and pay the balance in full each month. Some months it only hits a few hundred quid, other times its £2k if we have a large purchase etc.

If the lender runs another check before completion, it 'could' raise a red flag with them if your balance has gone from averaging say £200 to suddenly £2000. However you may have just used the credit card to pay for your new carpets and plan to pay it off out of savings so unless your affordability is borderline then I would be surprised if they pull the offer for this. 

You also may find its not even on the credit report yet as they don't update immediately. If I loaded £2k on ours today, it wouldn't show for a while on my credit report.