Mortgage approval condition

[Asian]

Hi All,

My mortgage offer states a special condition that my credit card should be cleared before completion. Would anyone help me understand how would I prove that it has been cleared?When would I have to prove this? Can my family member pay this on my behalf?

Appreciate your help.

Regards

I think a Statement showing a nil balance would suffice.
I doubt it matters who pays it either

I had this. I cleared it, but they never (Halifax) asked for proof

Not sure why my broker committed for the same, I am taking a mortgage of 280K, our affordability is 600K. Hope they don't ask for any proofs. Thanks a lot.

And yes this Halifax for us too, do they check the credit report again before disbursement of funds. Not sure why I keep worrying something will go wrong before we exchange/complete :(

Thanks, hopefully can ask my sis to pay this, I need all the money for the renovations .

You could pay it with renovations money then use it to pay for renovations?

Definitely this!

A pretty standard clause for every mortgage I have had. Noone has ever asked for proof, but I guess it may show in nay last minute credit checks?

I don't know if a last minute credit check was made. My credit rating was pretty good, even with the debt, so don't think that would have made a difference

They'll do a last minute credit check before releasing the funds. Standard condition and if they don't you'll have recourse to blame them if you still had cc debt and defaulted on your mortgage.

They will check.

Thanks everyone for your response, will clear it before the completion.

They don't need to ask you for proof, because they can do a soft search and it will show what balance you have or if it's cleared.

Genius.

I just had the same and it asked for the credit cards to be cleared by a set date which was a month after the offer letter came through and the funds cleared 2 weeks before that date. So while they could check that I had cleared the balance I already had received the money by that point.

The thing is, there is a lag in credit records being updated. I paid off my CC but it didn't show as cleared until almost a month later on my credit record. However, I think they can see a hard search on your record pretty quickly though if you apply for credit.

Exactly, I can pay now but considering we are completing this month end, it won't show up on my credit file.