Mortgage Application advice - credit card cash withdrawal

lawred2

Hi all,

Simple bit of advice needed here - currently going for a mortgage. All documentation has been submitted.

We are debt free. Save about 3k a month and rent is 1450 pm... We have more than a 10% deposit so plenty cash for legal fees, stamp duty etc The mortgage we are looking at is also well inside what the 'affordability' calculators advised.

We have a credit card which is managed tightly and currently the balance is about 200..

All in all the broker believes that we are a straightforward case..

However there is one anomaly on our credit card... back in November I somehow conspired to find myself without my ATM card in need of cash but in possession of my credit card.. So in desperation I withdrew the cash from the card. The card balance was cleared in the meanwhile.

It is the one and only time since opening that card account (a decade ago now at least) that I did a cash withdrawal... So needless to say I'm a little pi$$ed off that it had to happen 2 months before a mortgage application.

Should I voluntarily explain why that cash withdrawal is there before
a) they ask the questions
b) they unilaterally reject the application

Or should I sit on it? Some advice would be greatly appreciated.

coylemj

If you pay off the credit card (the full balance) every month then you have nothing to worry about. Don't be dreaming up reasons why you should be refused and FFS do not go explaining something which probably will not be an issue and which probably isn't on your credit record anyway.

lawred2

lol don't be getting annoyed with me

Well we wouldn't be consistent in paying off the full balance every month but it would range from 75% - 100% payment.. We would rarely let any purchase go unpaid for over 56 days..

It has been fully cleared since the withdrawal.

It's not on my credit record but it is sitting there nice and pretty on November's statement.

coylemj

lawred2 wrote: »

Well we wouldn't be consistent in paying off the full balance every month but it would range from 75% - 100% payment.. We would rarely let any purchase go unpaid for over 56 days..

Not clearing the full balance every month exposes you to very high rates of interest, I don't understand why you don't if you can save 3k per month.

If you know that the cash withdrawal is not on your credit record then why are you worried about it?

phormium

Have the bank asked for your credit card statement? They won't see the withdrawal on the ICB so unless they have asked for the actual statements I wouldn't worry about it.

lawred2

coylemj wrote: »

Not clearing the full balance every month exposes you to very high rates of interest, I don't understand why you don't if you can save 3k per month.

If you know that the cash withdrawal is not on your credit record then why are you worried about it?

Well it's the lowest rate card on the market and has been since I got it..

The balance is usually cleared; just some months it doesn't get fully cleared. Our rent and savings are by standing order and are looked after before anything else.

The amounts aren't anything huge here..

lawred2

phormium wrote: »

Have the bank asked for your credit card statement? They won't see the withdrawal on the ICB so unless they have asked for the actual statements I wouldn't worry about it.

the broker has requested 6 month's statements as part of the application.. whether those are passed on to the bank I couldn't tell..

broker has made no mention of it yet anyway

TrishSimon

lawred2 wrote: »

Hi all,

Simple bit of advice needed here - currently going for a mortgage. All documentation has been submitted.

We are debt free. Save about 3k a month and rent is 1450 pm... We have more than a 10% deposit so plenty cash for legal fees, stamp duty etc The mortgage we are looking at is also well inside what the 'affordability' calculators advised.

We have a credit card which is managed tightly and currently the balance is about 200..

All in all the broker believes that we are a straightforward case..

However there is one anomaly on our credit card... back in November I somehow conspired to find myself without my ATM card in need of cash but in possession of my credit card.. So in desperation I withdrew the cash from the card. The card balance was cleared in the meanwhile.

It is the one and only time since opening that card account (a decade ago now at least) that I did a cash withdrawal... So needless to say I'm a little pi$$ed off that it had to happen 2 months before a mortgage application.

Should I voluntarily explain why that cash withdrawal is there before
a) they ask the questions
b) they unilaterally reject the application

Or should I sit on it? Some advice would be greatly appreciated.

This is nothing don't worry, you seem like ideal people to get a mortgage taking cash out on a CC is really minor its when people apply with balances of 5, 6, 7K upwards the warning lights go on.
If they ask just explain exactly what happened but I wouldnt worry

seamus

You're way overthinking this. There's no reason why a cash withdrawal on a credit card would jeopardise a mortgage application.

Just submit what you need to and say nothing about it unless they ask.

lawred2

seamus wrote: »

You're way overthinking this. There's no reason why a cash withdrawal on a credit card would jeopardise a mortgage application.

that's my makeup I'm afraid... I've convinced myself we're going to be turned away..

Trish56

The lender would require 6 months credit card statements with your application however I see no reason to worry that this would affect your application whatsoever and if they do ask just explain what happened.
Best of luck

amen

Why are you using a broker? Why no go Direct to the bank>