Credit card paid off by completion?

slwj89

Hi All.

So we have had mortgage offer through, actually a few now due to having to extend (new build) when we had first offer I had a phone call from lender who mentioned paying off credit card by completion, however when offer came through there was no mention of that in 'offer conditions' 

Is this something that is sent to solicitor separately? 

we have been on this journey since jan now so please be kind, I'm knackered! lol

Tiglet2

It is usually in the special conditions in small lettering at the back of the offer.
You will need to send proof of payment before the lender will release the mortgage monies.

Noneforit999

We had that stipulation.

The lender never checked, they didn't even do another hard search before completion.

Obviously your mileage may vary but ours didn't ask for proof of anything being paid off despite it being a requirement of the offer. 

If you genuinely intent to pay it off before completion, they will either ask to see proof or they won't but either way, its not worth worrying about. 

TBagpuss

Noneforit999 said:

We had that stipulation.

The lender never checked, they didn't even do another hard search before completion.

Obviously your mileage may vary but ours didn't ask for proof of anything being paid off despite it being a requirement of the offer. 

If you genuinely intent to pay it off before completion, they will either ask to see proof or they won't but either way, its not worth worrying about. 

I agree that if you will be clearing it before completion then you needn't worry.

I think whether or not they check will depend on the lender and other factors as well - probably including how much the debt is and how much you are borrowing in comparison with thevalue of the property.

Last time I moved house my origibal buyer pulled out as his mortgage offer was withdrawn following a further credit check by the lender, and I have come across other cases where they have checked, so while often they won't, don't bank on it! 

(and even if paying it off is not included as a condition, they could still do a further check and pull the offer, although unless you had increased thedebt that is far less likely

slwj89

Thanks guys, I was expecting really brutal responses but clearly you all know where I’m coming from, we arent at any extent rolling in it, it took us years to save deposit and solicitor fees have doubled what we expected so being told we needed to clear the card was a bit of an extra expense, to be fair it’s only got a balance of 1.2k and we can pay this off however because of extra expenses on legal fees (extra 2k)has put a huge dent in budget.

Is it worth me asking our solicitor if he has had separate conditions?

user1977

Had you declared the credit card in your application? I'm wondering if it isn't mentioned because the application was silent about it, assuming you'd pay it off prior to complteion.

slwj89

user1977 said:

Had you declared the credit card in your application? I'm wondering if it isn't mentioned because the application was silent about it, assuming you'd pay it off prior to complteion.

Hey. Yer they knew about it, done a hard search credit check, and I declared it at application (through broker) never tried to hide it, like I said not a huge problem just an extra expense due to solicitors fees being through the roof 🤦‍♀️ Was quoted 1,600 now we are at 2,700 x

Martisha

slwj89 said:

user1977 said:

Had you declared the credit card in your application? I'm wondering if it isn't mentioned because the application was silent about it, assuming you'd pay it off prior to complteion.

Hey. Yer they knew about it, done a hard search credit check, and I declared it at application (through broker) never tried to hide it, like I said not a huge problem just an extra expense due to solicitors fees being through the roof 🤦‍♀️ Was quoted 1,600 now we are at 2,700 x

Why the legal fees have gone up so massively, if you dont mind me asking?
are you buying leasehold perhaps?

slwj89

Martisha said:

slwj89 said:

user1977 said:

Had you declared the credit card in your application? I'm wondering if it isn't mentioned because the application was silent about it, assuming you'd pay it off prior to complteion.

Hey. Yer they knew about it, done a hard search credit check, and I declared it at application (through broker) never tried to hide it, like I said not a huge problem just an extra expense due to solicitors fees being through the roof 🤦‍♀️ Was quoted 1,600 now we are at 2,700 x

Why the legal fees have gone up so massively, if you dont mind me asking?
are you buying leasehold perhaps?

Yes leasehold 😫 shared ownership property,also they took our case on last minute as our last solicitor was fairly new in her position and apparently didn’t understand shared ownership 🤦‍♀️ Although was recommended through housing association….

this has beeen a huge headache and will be glad when it’s over.