Mortgage offer

cmart021

Got the great news from the FA that the mortgage we were after was offered, on friday.

We were delighted and the solicitor said that the deal could be wrapped up in 10 days. Money for fees and deposit sitting waiting.

When we received our offer today in a small section at the back it stated that we must repay an existing loan we have.

Complete bombshell, loan amount sits at 8,900 and we dont have access to that kind of money immediately as we have to fork out for fees, stamp duty, deposit etc.

Has anyone heard of lenders doing this before and is there any way around it. Slightly disappointed at FA for not mentioning this may happen.

No way of taking more on mortgage to pay off the loan.

Any help appreciated.

smnb08

i have something in my offer that states i must repay a loan but i was aware of it and have borrowed extra money from the lender to clear it.
how annoying for you though how the hell do they expect you to magic that sort of money!
have you spoken to your fa yet?

cmart021

I have left word with him as he is in a meeting. The girl in the FA office asked me did I not take out extra money on the mortgage to pay the loan off? Seriously! This is the first mention of it. To think I'm paying these guys to get it sorted for me.:mad:

koexelek

It is quite a common think.

It normally means that, with the loan remaining in place, you are outside the lenders affordability guidelines.

You should have been told this from day one though

cmart021

The FA knew about the loan from the start. I dont think that affordability i an issue as we have been told we could borrow up to 210,000 but borrowing 30,000 less than that.

Could it be something to do with opting for interest only mortgage initially?

thanks

space_rider

When I got a mortgage in my sole name I had to pay off a car loan but I was aware I had to pay it off. I did pay it a few days before the completion date but I don`t know if they checked that I did. They certainly didn`t ask for any proof.

opinions4u

Ask them to look at this requirement again.

There should have been no misunderstanding.

It is possible that they have miskeyed the offer in some way for this to come up. Alternaitvely they've put you in an awkward position. Talk to them!

cmart021

The offer was indeed different. Whilst we asked for a tracker and signed on the details of the key facts with the FA when we received the offer today it was for a fixed rate.

There has to be a mix up or we are doomed. Gonna ring first thing in the morning again.

Anyone out there manage to get around this at any stage?

Well finger crossed. Thanks for the replies.

manikm

forget the loan thing - are u happy that you are now getting a fixed as opposed to the tracker???

surely you'll be paying a higher rate with a fixed than the tracker....

cmart021

manikm wrote: »

forget the loan thing - are u happy that you are now getting a fixed as opposed to the tracker???

surely you'll be paying a higher rate with a fixed than the tracker....

Most certainly not happy, however I can see this getting sorted out easier as it should be able to be changed to what we had agreed as the product is still available.

Original was 2.29 over base rate tracker, I know it was still high but we were expecting it. The offer stated 7.49 fixed for 7 years:eek: .

manikm

cmart021 wrote: »

Most certainly not happy, however I can see this getting sorted out easier as it should be able to be changed to what we had agreed as the product is still available.

Original was 2.29 over base rate tracker, I know it was still high but we were expecting it. The offer stated 7.49 fixed for 7 years:eek: .

Jesus!

6.7 (approx - its late!) is certainly better, and will hopefully come down on a tracker too if rates drop.