Credit card balance of £0 on mortages completion.

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! 

Comments

  • cymruchris
    cymruchris Posts: 4,882
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    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.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • ACG
    ACG Posts: 23,621
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    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. 
    I am a Mortgage Adviser
    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.
  • chanz4
    chanz4 Posts: 10,849
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    that is always in there, they hardly ever check
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • user1977
    user1977 Posts: 13,331
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    edited 13 October 2023 at 6:46PM

    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.
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