I recently applied for a mortgage with my partner to purchase a flat. The mortgage was approved on the condition that we used some of our deposit money to pay off some of my credit card debt and clear one card down to £4k. That is fine no problem with that and it will help with our disposable income.
So we paid down one card on Sunday @ £4,000 it has been cleared now and the balance showing is zero. I phoned up today to check the balance and it says £4,082?
I understand as I had been paying the minimums that some interest will accrue. But I am worried that when the bank do the credit check once we’ve moved in they will say we haven’t met the criteria and put the interest rate up on the mortgage. eg. If we pay off the £2,000 today next month there will be interest to pay and if we move in by the end of the month (which it looks like) then there won’t be 2 clear payment periods to keep the balances at zero.
Can anyone confirm/clarify or has anyone been though something similar?
I don’t want to get caught out. We didn’t pay them off before as the bank was going back and forth about how much they wanted paying off and which cards they wanted the balance left on.
Thank you in advance