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Mortgages & Clearing Credit Card Debt
chipsop
Posts: 31
Forumite
Hi All
I have had a mortgage offer (yaay) with a condition that I must clear my credit card debt. I asked my solicitor who says written confirmation will be fine as evidence.
I am a first time buyer, and whilst I do have the money to clear the credit cards, I would much rather spend it on furniture (of which I have none).
My question is, hypothetically, if I provide this written evidence, is there any way that any one can actually check that the debt is cleared? How realistic is it that I could lose the mortgage?
TIA!
I have had a mortgage offer (yaay) with a condition that I must clear my credit card debt. I asked my solicitor who says written confirmation will be fine as evidence.
I am a first time buyer, and whilst I do have the money to clear the credit cards, I would much rather spend it on furniture (of which I have none).
My question is, hypothetically, if I provide this written evidence, is there any way that any one can actually check that the debt is cleared? How realistic is it that I could lose the mortgage?
TIA!
0
Comments
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They could in theory check if he cc debt is still outstanding after 'x' months but you take your chance whether they do or not. Could you pay off the card, then get a new one with 0% for purchases then buy your furniture with that?0
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They could in theory check if he cc debt is still outstanding after 'x' months but you take your chance whether they do or not. Could you pay off the card, then get a new one with 0% for purchases then buy your furniture with that?
How can they check this, just by asking me? And even if it wasn't paid, what action could they take then?
I can pay off the card and then do a balance transfer (I have offers coming through all the time for my CCs), or yes - use a new one to buy the furniture.0 -
They will not check.0
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greyroofer wrote: »They will not check.
The solicitor will need to satisfy themselves. Many are quite thorough in this matter.
The credit cards are listed to be repaid as they will have been entered as 'to be repaid' on the application.
It may be that the case is still 'affordable' with the credit card debt outstanding in which case the lender can drop the condition.
Speak to your broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Speak to your solicitor about it and get their grasp on the conditions.
When I had a condition like that my solicitor said the lenders never check, it creates paperwork for me and hassle for you getting confirmation.....0 -
Some lenders ask the solicitor acting for them to obtain evidence of repayment, so it isn't true that every lender doesn't check.
Some do, some don't.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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