Credit Card - Mortgage

FTB129

Sorry I hope this makes sense and isn’t too much of a stupid question -

If I pay my stamp duty and fees on my credit card (approx 3k) will this affect my credit rating and then affect my mortgage offer (I have it offered and waiting just waiting to exchange and complete) do they reassess it again type of thing? Or shall i just avoid using my CC.


Many Thanks

jacobtheamish

Its always worth bearing in mind that a Mortgage Offer can be retracted at any point up to exchange of contracts. Providing all checks have been completed by the lender, and there is no reason for them to require a new credit report, I think you will be fine.
CRA's do take upto 30 days to display new debts and credits so time is also on your side.

From an affordability perspective though, its important to consider the additional monthly costs, keeping monthly commitments to below half your net pay is what most/many lenders look for.

witchy1066

also check if your solicitor will take CC payments , ours will only take cash of cheques for fee's

dgtazzman

It can actually be withdrawn at any time until funds are paid to your solicitor, so mostly a few days before completion, rather than exchange and many lenders will do another credit check before releasing the funds, especially if there is some time between the mortgage offer and completion. There have been 1 or 2 posts here recently with people that had their mortgage offers pulled just before completion, leaving them high and dry, so best to behave like an angel and avoid using that credit card till your solicitor has received the mortgage funds.

Of course, stamp duty has to be paid within 30 days from completion, so if you were really tight on funds, you could maybe arrange something with your solicitor to take payment using your credit card for this after exchange, don't know if they'll like the suggestion much though.

kingstreet

The CML Handbook says a solicitor has to have cleared funds, including stamp duty, in hand prior to completion. The thirty day stamp duty window therefore only applies to cash purchases.

You won't be permitted to pay SDLT by credit card and most solicitors won't accept fee payment by credit card either.

On the substantive issue, if you suddenly chuck £3k on a card when the lender has already done affordability without that kind of debt, you risk having your offer withdrawn.

Nationwide, for example, has a live trace on your credit accounts from application until completion, as do other lenders.

jacobtheamish

So I would totally disregard my comment :-)

FTB129

Thanks all for the advice, I will stay away from the CC!