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    • evo21
    • By evo21 15th Aug 16, 11:54 AM
    • 21Posts
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    evo21
    Mortgage Condition - Must pay off Credit Cards - Is this serious?
    • #1
    • 15th Aug 16, 11:54 AM
    Mortgage Condition - Must pay off Credit Cards - Is this serious? 15th Aug 16 at 11:54 AM
    So part of my mortgages T&C's states that:

    '£3,000 store card/credit card must be paid off in full within 30 days of mortgage completion' - it goes on to say that you cannot use further borrowing to pay this e.g. balance transfer.

    My question is - how serious is this?

    Both my partner and I have various credit cards with low amounts on (combined, less than £3,000).

    I just find it odd that it states that it's a singular credit or store card to that amount (which doesn't exist)?

    We both have every intention of paying anything outstanding off before we move in - I'm just wondering how serious it is, in the event that we have a couple of hundred pound left to pay off after the 30 days.

    Realistically, would they actually evict someone and force them to sell up over this? Or do they even check it? I've seen lots of threads about it but nobody ever says how it turns out!

    Bank is Barclays (Woolwich).
Page 2
    • evo21
    • By evo21 15th Aug 16, 2:44 PM
    • 21 Posts
    • 1 Thanks
    evo21
    Interesting that a number of posters consider a contractural obligation as something that can be considered optional on the basis that 'you will probably get away with it.'
    Originally posted by amnblog
    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.
    • ABBF08291
    • By ABBF08291 15th Aug 16, 2:56 PM
    • 20 Posts
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    ABBF08291
    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.
    Originally posted by evo21
    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.
    • glentoran99
    • By glentoran99 15th Aug 16, 3:00 PM
    • 3,717 Posts
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    glentoran99
    Is it a paper exercise on behalf of the bank so it fits in with affordability rules?
    • evo21
    • By evo21 15th Aug 16, 3:01 PM
    • 21 Posts
    • 1 Thanks
    evo21
    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!)
    • csgohan4
    • By csgohan4 15th Aug 16, 3:46 PM
    • 2,543 Posts
    • 1,571 Thanks
    csgohan4
    £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
    • evo21
    • By evo21 15th Aug 16, 3:50 PM
    • 21 Posts
    • 1 Thanks
    evo21
    £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
    Originally posted by csgohan4
    Like I keep saying, that's the plan...
    • evo21
    • By evo21 10th Oct 16, 2:51 PM
    • 21 Posts
    • 1 Thanks
    evo21
    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!
    • marsman802
    • By marsman802 10th Oct 16, 3:21 PM
    • 528 Posts
    • 231 Thanks
    marsman802
    They never followed up with me when I had a mortgage with them and the same conditions attached.
    • ap1985
    • By ap1985 10th Oct 16, 4:19 PM
    • 260 Posts
    • 102 Thanks
    ap1985
    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.
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