Credit card balance of £0 on mortages completion.

DaftSwan2023

Good afternoon, my wife and I are nearing the completion of our home buying process. 

However we have noticed a minor issue on our mortgage application when going over the final checks. 

It states that our credit card debt (around £800) in total will need to be paid on full upon completion of the mortage. And proof of this has to be submitted to the solicitor.

My question is, would this need to be proof of a balance of £0? Or would they require closure of these credit card accounts also.

Although a very small debt in total, we have ploughed all our available finances into securing this home deposit so although we can pay the balance in full, we may need to rely on these cards to see us through the month. So would I be right in saying I can pay the cards off, get proof of the £0 balance and then use the card again at a later date if required?

Thanks in advance for any responses! 

cymruchris

Yes - at the time they request it - it needs to be fully paid off - and proof submitted.

You don't have to close the account - and once you've got your mortgage money in the bank as it were - (not before!) you can go spending on your credit card in whatever way you want.

ACG

As above. Show them a nil balance and you are fine. 

There is no issue having a credit card, many people have a card and pay it off each month. Its the balance they are interested in. I would be amazed if £800 had any effect but its not worth the hassle is it. 

chanz4

that is always in there, they hardly ever check

user1977

DaftSwan2023 said:

However we have noticed a minor issue on our mortgage application when going over the final checks. 

It states that our credit card debt (around £800) in total will need to be paid on full upon completion of the mortage. And proof of this has to be submitted to the solicitor.

Does your solicitor think so? And if they do, paying it off upon (not before) completion means you wouldn't have proof until after you've got your mortgage funds and are unpacking in your new home. Which might be what your lender expects, but there isn't any practical way of enforcing it.