Credit card usage mid mortgage application

georgemanor

Hello all, slight panorama about my credit card usage going up from the balance of £850 to £1400 on my credit report.so roughly 25% credit usage in total.

The thing is this is already paid of as of 2 weeks ago but for some reason credit karma updated and used last months outstanding balance.

So I have no credit card debt right now but on my report it says my credit usage has gone up in may which is true.

Any idea if the lender would pull the offer because of this? if so can I tell the underwriters that my credit debt is actually paid off? and its just outdated on the credit report? I can provide evidence via bank statements that its actually paid off.

FYI i passed underwriters and valuation - im just worried they'll pull the offer just before the exchange.


Thanks.,

georgemanor

FYI this debt is before i started the mortgage application - for some reason it only updated now.

georgemanor

And it was cleared 2 weeks ago - i wonder if I can request the credit reporters to do another check rather than wait another 6 weeks?

summerb64

It will be fine, mine changed on the credit reports multiple times during offer - completion and no issues, they done a hard search at application and then nothing after so should be fine, obviously some lenders might do another check but probably quite rare I imagine, I went with nationwide if it helps. 

georgemanor

summerb64 said:

It will be fine, mine changed on the credit reports multiple times during offer - completion and no issues, they done a hard search at application and then nothing after so should be fine, obviously some lenders might do another check but probably quite rare I imagine, I went with nationwide if it helps. 

Glad to hear it - im with nationwide too.

mdj1876

It totally depends if they do a second check, which they may! You cannot request that they carry out another check further down the line, they do it when they do it usually without you even knowing. I wouldn't even mention it to them, otherwise you are opening them up to doubt and telling them about your credit card spending. 

If the time between offer and completion is quite long, I would fully expect a further credit check however this isn't certain. 

Your credit file is usually 30-60 (sometimes 90) days behind. Key note - never ever spend on any form of credit between mortgage offer and completion.

georgemanor

mdj1876 said:

It totally depends if they do a second check, which they may! You cannot request that they carry out another check further down the line, they do it when they do it usually without you even knowing. I wouldn't even mention it to them, otherwise you are opening them up to doubt and telling them about your credit card spending. 

If the time between offer and completion is quite long, I would fully expect a further credit check however this isn't certain. 

Your credit file is usually 30-60 (sometimes 90) days behind. Key note - never ever spend on any form of credit between mortgage offer and completion.

Ive spent a lot of credit, also just completed. They didnt check, it think this is really a myth. After the first hard check - unless youre like 6 months of waiting between offer and completion i dont think they bothered.