Any mortgage advisers? Not sure DH got this right!

[mumtomaxwell]

We want to borrow a bit more on our mortgage (15k) for home improvements which takes us to 75% ltv. I think we have to tell lenders about our credit cards (owe about 7.5k across 2 cards) and they’ll check anyway. DH thinks they won’t check and will take our word for it!! Who is right? And what checks do lenders actually do?

Of course they check! It’ll be on your credit file.

They’ll do a credit check and an affordability check.

They'll definitely check

I used to be a mortgage advisor so this may not be 100 % accurate but I can't imagine it has changed that much. The credit search will reveal everything. They will usually cross reference and if you don't declare your existing credit they will ask you to not only declare it but to disclose why you didn't in the first place. So you are right and your dh is wrong

Not only will they check but they'll query if the amounts quoted don't match what's on your credit report.

I can't confirm this is the case for all lenders, but certainly some of them.

Absolutely they check.

I was asked about a credit agreement with Apple which I hadn't thought about or mentioned.

they will definitely check, we told ours a figure which we believed to be what it was, when we got the final offer they told us what the actual credit card figure was - they do check!

The compulsory ‘credit check’ checks your credit, of course they’ll know.

If lenders trusted what they were told, they’d never refuse an application.

They’ll definitely check. I remortgaged a few months ago. I declared no credit card balance as I pay it off in full every month, but had used my card to buy something for a few hundred pounds. The direct debit hadn’t come out when they did the credit check and the mortgage company queried it, so they would definitely spot £7.5k

Great, thanks - will tell DH “I told you so!” And we can carry on paying every last penny we can afford off those bloody cards!

To be fair, the number of people who think if they don't declare an outstanding debt, it somehow ceases to exist, is astonishing