Condition of mortgage

[getlamped]

When applying for my new mortgage, the advisor asked if I planned to pay off my credit card (£500) and I said yes. She asked if I'd be cancelling it. I said yes.

So it's been written as a condition of my mortgage.

I've paid it off, but in hindsight, don't really want to completely cancel it.

Do I need to? Do they check this? Fine if they do, it's what I agreed. If they do check, how do they check. Do I need confirmation from my credit card company, or can they check this themselves via my credit check? A friend says nobody checked hers, but I'm not going to risk that.

Thanks.

How utterly utterly odd
Presumably you needed to do this to improve your credit rating? Only explanation

Just cancel it. If it is a condition of your mortgage you'd be daft not to.

Yes that would make sense
If you pay it off in total and cancel, you’re credit rating will improve
Meaning better mortgage deals

Either way… just ask her!

Cancel it and apply for a new one when you have the mortgage?

I’ve never heard of this but I’m assuming you’ve a credit rating issue.

Have you actually got a mortgage offer in principle?

My credit rating is excellent. It was poor, years ago. But I've kept on top of everything for a long time and had actually only got the card to improve my rating prior to getting my initial mortgage 4 years ago.

And yes, I'm moving into my new property next week.

Your moving in next week? And trying to arrange a mortgage now?

So to be clear
You complete next week
You have your mortgage agreed and you have been accepted

If it’s explicitly written that you will cancel it. Then you have to

Very odd

I’d give the broker a buzz for clarity

Cancel it - ring them now and do it

Also get a statement showing a nil balance. it might be something your Lawyer asks for before they are allowed to use the mortgage funds for completion.

You don't want any issues next week.

I’ve never heard of anyone being asked to cancel their credit card as a condition of their mortgage with a good credit rating. Are you borrowed up to thr max?

Borrowed to the max on my new mortgage? Or other finance?

I have no other debt and no, they were willing to offer me more, apparently.

We can’t answer why op

But we can tell you that if a condition of your mortgage
Then you need to do it

I've phoned and cancelled it now anyway.

I had this written into my mortgage due to their affordability calculators. My credit card was at a nil balance for completion but they never asked me to cancel it.

It will make no difference if you pay it off and cancel it now, data can take up to two months to filter through to credit referencing agencies so the card will still show as open and with a balance. But you’ve done it, and I think it’s incredibly unlikely they’ll ask for proof.

The CC's aren't a condition on ours but paying off 2 loans are - we're using equity to do it so it's not an issue

Our CCs are minimal (as was yours) but these weren't mentioned

I wasn't aware we 'had' to but I guess now you've said this it must be required