Confused over credit card payments

Suaviter

Hi all.

First time buyer here. I completed an online application for a mortgage with Nationwide. I have a credit card of approx £2100 (0% interest). I declared this on the forms. A further section of the form asked me how much I would pay off before completion. I wrote £200.

I'm close to exchange and completion now and my solicitor has asked for my credit card statement showing that I've cleared £200 and my balance is now zero. But I didn't think I said I would have zero balance? I am worried I misread the application. I don't see how it could have my full balance on one page and then interpret my £200 balance as the full amount.

I will ring the mortgage provider tomorrow (nationwide) but does anyone have any advice?
Thanks

Helen

ACG

Read your Mortgage offer, towards the back it will have special conditions - just check your solicitor is reading it correctly (you should always read your offer in full).

I have had this happen a few times with Nationwide, everytime it has still passed affordability but I would just double check it passes affordability otherwise you may find the loan amount gets reduced.

Suaviter

Thanks for the reply. The offer letter mentions paying £200 balance on Barclaycard. Which is the correct card. But the word balance suggests it's the full amount?

davidmcn

Suaviter wrote: »

The offer letter mentions paying £200 balance on Barclaycard.

That wouldn't make sense to me. Is that exactly what it says?

AnotherJoe

I suspect your solicitor has made a boo boo and assumed the fact you said you'd pay off £200 meant the whole balance, as thats a more usual thing for people to say.

ACG

Check the affordability calculator. If it passes, then I would not worry. Just tell your solicitor what has happened. If it does not pass and you are unable to pay it down enough to make it pass, you need to start looking at alternatives (which could be as simple as extending the term or a the other end finding a new lender) and/or kicking up a fuss with nationwide.

Suaviter

It says "this offer is issued on the understanding that the following commitments will me repaid on or before completion:
Credit card with Barclaycard with an approximate balance of £200".

It says then that we can repay the debt from this loan (the mortgage) but we can't transfer it to another lender.

kingstreet

Solicitor needs to call/fax Nationwide and ask them to confirm what exactly was agreed to.

If you've said you'll pay off £x of a £y balance that's all he needs to check - that Nationwide is expecting that.

davidmcn

Suaviter wrote: »

It says "this offer is issued on the understanding that the following commitments will me repaid on or before completion:
Credit card with Barclaycard with an approximate balance of £200"

Ok, I agree with your solicitor's interpretation. If Nationwide have misinterpreted your application then they'll need to clarify that with your solicitor.

kingstreet

What is submitted/disclosed in the application is not what is reflected in the offer.

The application asks;-

Total outstanding credit card balance £

and

Credit card balances being cleared on or before completion £.

This leaves scope for applicants to pay off as much as they can, or as they need for affordability reasons.

If it was intended that the entire balance be repaid, as indicated by the offer wording, the submission process would have to be different.

It's clumsy, ill-thought out and regularly causes issues.

swishy87

I've got to question something on our nationwide offer this week too.

We have car finance that will be paid off within 6 months of completion, which apparently doesn't have to count on nationwide affordability. However now the offer states that it has to be paid off in full before completion. I will update when I know what they say if it helps.

I