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Mortgage conditions query
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jwil
Posts: 21,932 Forumite
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"Good financial planning is about not spending money on things that add no value to your life in order to have more money for the things that do". Eoin McGee
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How much unsecured debt did you have to pay off out of interest?0
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Between us - approx £45,000 :eek: We can pay it off using an inheritance. This wasn't the original plan for the money, but we can do it, so we accepted the mortgage offer."Good financial planning is about not spending money on things that add no value to your life in order to have more money for the things that do". Eoin McGee0
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Hi all,
We've just taken out a new mortgage with woolwich, and as part of the conditions of mortgage we need to pay off our existing unsecured debt within 30 days of completion. This is fine, but how are they going to know we've done it? Will they check our credit rating or will we have to send them statements?
It was in our conditions of offer, but no one's mentioned anything since (we completed 23rd Feb).
Thanks in advance
Jwil
I had similar conditions when I started my mortgage and they never checked up on mine. I didn't even pay off all the ones I said I would, the smaller ones mind. Still the level of how bothered they are will depend on the lender I guess0 -
flammable999 wrote: »I had similar conditions when I started my mortgage and they never checked up on mine. I didn't even pay off all the ones I said I would, the smaller ones mind. Still the level of how bothered they are will depend on the lender I guess
I did wonder whether they would just assume we had done it, but I don't know what the consequences would be if we didn't do it, so we'd better.
It's just not really fair on my husband as it is his inheritance, but mainly my debt!:("Good financial planning is about not spending money on things that add no value to your life in order to have more money for the things that do". Eoin McGee0 -
They do random checks.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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They cannot know whether you've paid off the unsecured debts. Obviously you should as the affordability would be worked out on the basis you've said you're paying it off but there's no way they can check. Your solicitors can't check either, they can only force you to repay the secured loans and don't normally get involved with the Unsec leaving it to the borrower to sort out.
My first answer to a thread!0 -
Check the T&C of the actual loan.
If these say failing to pay this unsecured debt is a breach of the terms they may be able to call in the loan.
You could always recycle the debt so they are not the same ones as were required to be paid off.
Devil is in the detail.0 -
VIGILANT22 wrote: »ie whoever is doing the conveyancing if this is a condition of the loan..
They would love more work 30 days after completion.0 -
getmore4less wrote: »They would love more work 30 days after completion.
the solicitor is supposed to see all conditions are met...0
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