When does my mortgage start?

[Sheetmaself]

Obvious answer is read the paoerwork but I can’t see the answer.

I buy the house on friday but my solicitors get the money from the bank today.

I presume this means my mortgage starts from today as that is when the bank no longer has their money but am i right?

A term of the mortgage is to have nothing on credit cards which i have done but i do need to put £1k worth of bed on my credit card as soon as i have the mortgage!

Any guidance will be greatly appreciated, thanks for reading.

[CharlesElliott]

The mortgage starts when you draw down the funds - ie today.

[Sheetmaself]

Brilliant thank you so much.

[Sarnie]

Your mortgage starts tomorrow when your solicitor sends your funds to the vendors solicitors and completes your purchase.

Your completion could fall through tomorrow and your solicitor could return your funds to the lender as the transaction hasn't completed.

[Zoon]

I've not heard that before about credit cards. Must be a new thing.

[Chilly for June]

Zoon said:

I've not heard that before about credit cards. Must be a new thing.

Possibly tight on affordability so they wouldn't accept him with any outstanding credit card debt.

[Sarnie]

Zoon said:

I've not heard that before about credit cards. Must be a new thing.

He would have had credit card balances at the point of application and would have told the lender that these would be paid off before completion. The lender would have inserted the clause because it wouldn't fit on affordability without the cards being paid off.

[sociopath]

If it's that tight I wouldn't be buying a £1k bed on cc.

No need to spend that.

[Sheetmaself]

All sums done and plenty able to afford the mortgage, it is my only debt. Didn’t have much on credit card about £300 but they wanted it paid off

But as long as i know to wait until i have the keys all is good.

[bigandclever]

Out of curiosity, how would the lender know? Unless they have live access to the OP's credit card bill.

[Sheetmaself]

For my case the mortgage and credit card are the same bank.

[fat80b]

If cash is tight, I'd also make sure you understand the first mortgage payment amount / schedule. Sometimes, there are an extra few days on the mortgage that need to be added on the the first payment to get everything lined up. This can come as a bit of a surprise.

I'm also of the view that you don't need a 1K bed at this point in time. Get a s/h bed frame and a new mattress and have the 800 left over for the inevitable things that will need doing when you move in.

[bigandclever]

Sheetmaself said:

For my case the mortgage and credit card are the same bank.

Fair enough.

[Sheetmaself]

Payment will be at the end of the month.

Only reason it will be going on the credit card is due to waiting for a large (5 figure) sum to come in that hasn’t yet and the bed being ready earlier than expected and unless i pay for it by 2nd june they are going to cancel my order.

I do appreciate the concern but trust me I’m very good with money and more than comfortably set up, its just the delay in payment combined with the bringing forwards of the order plus putting a big six figure sum deposit on the new house.

[bmwmike]

Sounds like you've got a good handle on it all to me. Enjoy the new home (and bed!).

[MattyD803]

Had a similar clause many years back.....I think it is pretty much standard issue in many cases.

The irony is that in many cases, your credit score (and therefore mortgage viability) is actually worse if you don't have some rolling CC debt that you can show that you manage sensibly.

Anyway, don't worry, CC debt won't be checked again.

[Sheetmaself]

Thanks for the advice, going to be sensible and wait until i have the keys before i put anything on the card a night or two on a mattress or spare room isn’t the end of the world really.

[devnull]

Yes the credit card thing seems to be fairly standard. I had it for a tiny mortgage application and a trivial amount on a card at the time. Seems ot be standard working for Nationwide.