Mortgage and credit card debt...?

LindseyM

Hi all,

Just after a bit of advice really. We've just applied for a mortgage and together we have approx £5K of credit card debt. I've just recently switched this to the MBNA 5.9% rate for life card, which I think is a really good deal.

However, once our house gets sold and we buy the next one, with savings etc, we will be left with the 10% deposit plus around 7K which I said would be used to pay the credit card debt off, this is actually a condition of the mortgage (i.e. that on completion, the credit card debt would be paid off).

The house we're buying needs work doing to it, so after the credit card is paid off, we'll be left with around 2K. We'll need more than this to do the works. So, what I'm wondering is, how do they know that i've paid the card off? I think the rate for life deal is great and I would rather keep paying that off and use the other 5K on the house, could we do this? Would the lender check that we've paid the card off?

Sorry for the ramble, thanks in advance for any advice! :beer:

minimike2

Well you can pay the credit card off and show them the statement to show that its been paid off, but then whats stopping you getting a new 0% card for doing works on the house?

As long as its affordable of course.

LindseyM

Thanks for the reply

So, they will ask to see proof of the card being paid off?

I wasn't sure if I'd get another 0% card with having just got the mortgage and the rfl card recently as well :rolleyes:

edit: Yes, affordability is no problem