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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To book trip on credit card whilst in the process of buying a house?

36 replies

Goofusdo · 01/05/2024 19:24

It’ll only be a few hundred pounds but I wanted to pay for it via credit card for the security. I would then pay it off in full before any interest accrues (so by the end of next month).

I don’t know enough about it, so turning to Mumsnet to ask. Is it fine to do this given we are currently buying a house or will the lender wonder why I have borrowed £350?

We have already had the mortgage application approved but in the midst of going through everything with the solicitors.

OP posts:
Notquitefinishe · 01/05/2024 20:31

Mine was the first reply and I just want to be clear, this was an existing credit card and was normal spending. We could prove it was paid off before the even sent us the letter about it. I'm just sharing my experience but it clearly shows it isn't always fine not and I'm not being OTT as a pp said. I was really surprised as have used credit cards for years and never once had a balance not paid off in full every month. This was of no interest to them and the mortgage offer was withdrawn.

Edit: typo

TipsyKoala · 01/05/2024 20:35

I’ve never heard of not using a credit card whilst in the process of buying a house, especially if the mortgage is already approved. I’ve always done monthly spending on my credit card (several hundred per month) then paid it off in full each month, and this has never been an issue for mortgage applications.

Glass113 · 01/05/2024 20:41

Notquitefinishe · 01/05/2024 20:31

Mine was the first reply and I just want to be clear, this was an existing credit card and was normal spending. We could prove it was paid off before the even sent us the letter about it. I'm just sharing my experience but it clearly shows it isn't always fine not and I'm not being OTT as a pp said. I was really surprised as have used credit cards for years and never once had a balance not paid off in full every month. This was of no interest to them and the mortgage offer was withdrawn.

Edit: typo

Edited

It's not clear from your post. Did you not declare it on your application? Or did you not have the debt at application and it was discovered from a later credit check?

Notquitefinishe · 01/05/2024 20:51

Glass113 · 01/05/2024 20:41

It's not clear from your post. Did you not declare it on your application? Or did you not have the debt at application and it was discovered from a later credit check?

Show quote history

We had that credit card and declared it. Told the broker it was one in daily use. We didn't declare we had any debt because we paid it off in full every month. I don't even know how we would have done - the balance changed from day to day.

Glass113 · 01/05/2024 20:53

Notquitefinishe · 01/05/2024 20:51

We had that credit card and declared it. Told the broker it was one in daily use. We didn't declare we had any debt because we paid it off in full every month. I don't even know how we would have done - the balance changed from day to day.

Show quote history

Sorry not trying to poke I'm just in the middle of the process and trying to understand what lenders are looking for.

Were you declined at application then or after the offer when they did a subsequent credit check?

Notquitefinishe · 01/05/2024 20:58

Glass113 · 01/05/2024 20:53

Sorry not trying to poke I'm just in the middle of the process and trying to understand what lenders are looking for.

Were you declined at application then or after the offer when they did a subsequent credit check?

Show quote history

It was 6 years ago so don't remember exact details but we had had an offer accepted on a house on the basis of the mortgage deal being in place (so an Agreement in Principle I'd imagine) and it was then withdrawn later. Some sort of check must have been done at that point. We had to quickly arrange a different mortgage (on which we actually got a better deal) so as not to lose the house. We didn't feel we had been in any way dishonest on the application - we had very much told the broker about the credit card.

Glass113 · 01/05/2024 21:02

Notquitefinishe · 01/05/2024 20:58

It was 6 years ago so don't remember exact details but we had had an offer accepted on a house on the basis of the mortgage deal being in place (so an Agreement in Principle I'd imagine) and it was then withdrawn later. Some sort of check must have been done at that point. We had to quickly arrange a different mortgage (on which we actually got a better deal) so as not to lose the house. We didn't feel we had been in any way dishonest on the application - we had very much told the broker about the credit card.

Show quote history

It's a minefield isn't it. We had similar where we had an AIP with Nationwide but when it got to application stage they declined us due to a debt we had that was declared but they didn't like for some reason.

Applied with Natwest and accepted 5 days later. We've just exchanged and are completing in a couple of weeks so was just wondering what other peoples experiences are as its all so nerve wracking until the keys are in your hand!

HansBanans · 01/05/2024 21:21

@Notquitefinishe sorry to jump on. I've just stumbled across this thread and now I'm in a panic 😂 was it that you had the AIP but then when you applied for your mortgage offer it was declined? Or had you had the AIP, applied for and received your mortgage offer, and then they withdrew it?

AIP and mortgage offer are two different things so just looking to clarify 😊

Zippedydoodahday · 01/05/2024 21:24

You could pay the cash onto the card first so it is in credit, and then make the payment to bring the balance back to zero.

whistleblower99 · 01/05/2024 21:30

This can happen for several reasons. Affordability. The lender checks between approval and release of the funds and sees undisclosed debt.

The people who have had issues aren’t lying. The people who are saying they are being OTT, either weren’t close to affordability or didn’t have another check before release of the funds.

RawBloomers · 01/05/2024 22:38

I’ve always used my credit card as usual when buying a house. We put the vast majority of our day to day spending on or credit card to get points and then pay it off in full each month. It’s not been a problem but we haven’t been borrowing up to our absolute limit and we always declared that we used out credit card this way (and credit card statements backed this up).

You could pay for the holiday and immediately make a payment to the card. Or just declare the amount on the mortgage application.

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