Mortgage offer & credit card

Tunde0677

Hello Everyone,
Please I need your help!!! I just got my mortgage offer today HTB after about 6 weeks documentation. From my application my broker asked about our credit card which the balance is £4000 between me and my partner, mine £1200 and partner 3kplus. I said to the broker that I would clear it by the completion of mortgage application.
Now, my mortgage offer raised the credit card balance but there is this exact words that scared me "we will rely upon you to repay such credit to reduce your monthly outgoings on completion and must draw your attention to the fact that not doing may jeopardize your ability to make future repayments."
I am hoping to pay part before, but after reading this wording my heart started pounding if not fully paid, my mortgage offer might be withdrawn.
Please advise!!!!

Finchy2018

My offer with nationwide (Not help to buy) offer stated I needed to clear my card. I did, but was never asked to prove it and had no further credit checks.

That's only my experience though I'm sure other lenders can and do. I didn't tell my broker I was going to clear it however, but Nationwide asked, so I did.

Tunde0677

I can only settle like 2k out of it, but they raised in the mortgage offer, I am panicking. It's precise mortgages.

scholesfan88

Why did you tell your broker you would have it paid off before completion whilst then thinking you would only part pay it?

Tunde0677

I have worked out the plan to get the money, but unfortunately along the line, unexpected issues came up.

scholesfan88

You need to speak to your broker about this.

There's a chance they wont check like in the case of the PP, but there's a chance that they do follow it up and ask for proof and worst case withdraw the offer?

Tunde0677

I will contact my broker on this, but if I paid 75% off this CC, I hope it wouldn't affect. This is scary for me. Just want to have my key by end of this month.

muhandis

1. You told your broker that you would have 0 credit card balance at the time of completion, so that is what they would have used for affordability and the application.

2. Based on what your broker told them, your lender also expects that you will clear the balance before completion, as the letter indicates.

Depending on how close to your affordability limit you are, the 25% remaining balance may or may not have an impact on how much the lender will lend you.

So in your place I would fess up to the broker and say that circumstances have changed which mean that there will remain a balance of X on the cc and ask them what needs to be done.

Let_Us_See

What does it state in your mortgage application form? Your adviser has provided a copy ............... yes?

nowhereboy

To me the wording isn’t specific in stating how much debt must be paid off or which debt etc.

Many mortgage offers contain similar statements these days and I’d be very supprised if it caused an issue.

That said I’d run it by the broker just incase.

JayCeeEssex

As a broker, I would expect a client to inform me of any material changes to information supplied to a lender at application stage...and I do make it abundantly clear to my clients that it is their duty to inform me of any changes. Reading between the lines, it seems to me from the sentence you quote that it is not a condition of offer that the cards be cleared, but it is advising you that if you don't clear the cards and then you cannot meet your mortgage repayments then don't expect any sympathy from them!

Go and speak to your broker...he will be able to give guidance and may well make a quick call to the lender to put your mind at rest.