Clear off Credit Card Condition

REDDDRAGGON

So I got my formal offer through yesterday and one of the conditions is to clear off the balance of my credit card.

This is not a problem as it's only a £500 limit card anyway, and I pay off the complete balance each month anyway.

However as I do a lot of travelling with work I use the card in preference to my debit card, so as soon as I pay it off (as normal) I start using it again.

Does the lender just want to see that I've paid it off completely? Does it matter if I start using it again? Or do I need to show a balance of £0 for the month when I complete?

amnblog

Speak to your solicitor. It is their job to make sure such conditions are adhered to.

Very occasionally you will find a solicitor who is very anal about this. Most will be comfortable if you pay the card off monthly as usual.

TBeckett100

I dont think many solicitors check it to be honest, mine never did on my last two mortgages. Given the time it takes for credit files to be updated etc, you should be fine.

circuit

We had to show the lender proof of zero balance (letter or statement) via our broker. They refused to agree the mortgage without it.

plumfin

I had the same clause in my offer and I had a letter about a month afterwards asking me to send them a statement. Same situation, I use a personal card for business and so it is never £0, as my expenses are paid on the 8th or so, so I will already have used the card for a week after month end.

I called the mortgage company, explained, and they were absolutely fine and said it is no problem at all. It was a huge relief as my broker, contrary to previous encounters, pretty much washed her hands of it when I asked for advice. Mortgage company were more than helpful though and completely understood.

Good luck, hope it gets sorted.

ChopperST

+1 for all the above.

Both my wife and I have cashback cards that will creep up to £2k per month, this was highlighted on our application and we simply sent the lender a copy of the statement showing that the balances had been paid off in full via our solicitors.