Mortgage Condition - Must pay off Credit Cards - Is this serious?
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But is it even a real term if this account doesn't exist anyway?! There's so many holes in it. No names, no accounts, no way of checking within the 30 days...
We have every intention of paying anything we owe ASAP (hopefully the next week or so) - god knows I don't want any debts other than my mortgage! But it just seems like it's a moot point - hence my questions.
I assume you/broker filled in some kind of side sheet which named each credit card, store card etc one by one and the applicable balance on each. Broadly speaking all of this debt (or £3k of it) was assumed repaid/to be shortly repaid, when considering the amount to lend you.
Broadly speaking the contractual obligation reads "you have to clear 3k of your unsecured debt" it just has not named any of it. Whether you actually clear it and whether they will actually check is up to you to deduce. You have already admitted you have unsecured debt so it would only be a real talking point if you had zero debt and you then found that clause in the TCs.
Like previous posters have suggested, I doubt there is a formal check in place for this. I have heard that random credit checks can be carried out post completion but whether (a) they would do this and (b) actually take any action if they saw the 3k still unpaid remains to be seen.0 -
Is it a paper exercise on behalf of the bank so it fits in with affordability rules?0
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Yeah, that's what I though ABBF08291.
We are going to pay it - there's no way I want that in the back of my mind, stopping me from enjoying my new home. We can pay it, so we will, and that's fine. It just seemed a very pointless thing, which has made my partner and I realise we may have to cut down over the next month (baked beans for tea it is!)0 -
£3000 is not a low amount of debt
For those wanting the OP to bury their head in the sand and ignore, it's called mortgage fraud and the mortgage could be recalled and/or make it difficult to get a mortgage in future.
OP do you want to risk your house for 3k of debt you accrued prior to buying a house? Pay it off before it becomes a problem"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
£3000 is not a low amount of debt
For those wanting the OP to bury their head in the sand and ignore, it's called mortgage fraud and the mortgage could be recalled and/or make it difficult to get a mortgage in future.
OP do you want to risk your house for 3k of debt you accrued prior to buying a house? Pay it off before it becomes a problem
Like I keep saying, that's the plan... :T0 -
I just thought I'd drop an update - we have happily paid off any outstanding debts so I am unable to update future posters on whether or not Woolwich typically follows up on this kind of term! Thanks for all advice given and apologies to any offence I may have caused to the many mortgage brokers who replied to this unfavorably... It's all new to me so I was just asking a theoretical question out of curiosity.
Thanks again!0 -
They never followed up with me when I had a mortgage with them and the same conditions attached.0
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I think that is a very generic clause mortgage company's use for those that have outstanding debt. I have the same clause in my offer. Whilst I may not be able to pay all of my outstanding debt off, I intend to pay at least as much as I can till when I complete.:jFinally going to be a homeowner:T0
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