Question about mortgage credit checks

Robinsonandi

We can pay credit cards off today, that's not a problem. My wife opened a new credit card on 0% because the old one was running out. She quoted :money:'s advice about credit cards.

So, we can close the old one, pay 75% off both credit cards.

Will closing an old credit card increase our credit rating?

Can the lender reduce or remove the mortgage offer after exchange?

I would appreciate advice rater than criticism please

Robinsonandi

Also, should I just phone the mortgage company and tell them what we've done?

amnblog

The key point here is, have your total credit card balances increased since you got the mortgage offer?

If you were tight on affordability with £2,000 on your cards and then took another £2,000 (even at 0% interest) on the new card your circumstances have clearly changed.

Robinsonandi

They increased from £7,000 to £8,000 (£1,000 limit on new one) now we've cancelled £4,000 limit one so we have credit of £5,000 available as opposed to £7,000 at time of application. Just wonder how long the cancelling of old card will take to show up on any checks

Robinsonandi

What we have spent on credit card rose from zero on application then to £3,000 now we only owe £1,000

amnblog

Buying anything on credit during a mortgage application is not recommended.

Leave your credit file as untouched as possible until you have drawn down funds is the message.

Robinsonandi

The mortgage broker (countrywide) took credit card details to charge our arrangement and completion fees so surely were not the only ones who must have spent on a credit card when buying a house.

Robinsonandi

Should I inform the mortgage company about our new card?

gazter

ACG wrote: »

Call me a dentist!

Its taken over an hour to get that from you.
Ive been trying to work out why theyre offering so little for the income, why would you not just say that at the outset or at any point when ive hinted towards there being some sort of info being missed - you could have saved us both a lot of time.

My answer remains the same, they could do a credit check and have an problem with it as there is an issue with affordability. In which case the solicitor or lender may need to see confirmation it has been paid off. But you may get lucky and it might not get checked.

For those of us who are only here because we are going through the process, and dont expect to go through it again for some time, can i just say a genuine big thanks to those people like yourself that give us all the most valuable time and advice for free. Even when i'm sure its quite frustrating.

thank you

gazter

Robinsonandi wrote: »

Should I inform the mortgage company about our new card?

Good god no. What would it achieve? If they dont check, you are fine, if they do check you'll have questions to ask and it could go either way.

If you do tell them though, they will now know and want to ask questions.

By telling them, you turn the possibility of a problem into an inevitability of a problem.