Mortgage offer terms

Wagesbird

Hi,

I recently applied and was approved for a mortgage through Halifax with the government home buy direct scheme.

I had cc debts of £12k and have managed to get this down to £5k over the last few months and this would have been paid off until my mortgage broker advised me that Halifax now need a 5% deposit, so the money I would have used to pay off the remainder of the cc is now going on the deposit! I told the mortgage broker this and he said it was still fine, but now I have had my offer through the terms stipulate that all cc debt must be paid off!

I have spoken again to my mortgage broker, who assures me this is fine. He said he has spoken to the Halifax and they have said just pay off the cc and then pay the deposit on the house with the cc. However my solictor has said I cannot do this as they would need to report the extra money owed to my lender and they wouldnt agree. The broker has now said, get the cc down to about 4800 and the mortgage will still be fine and fit on affordabilty. I have asked for a revised mortgage offer, but he has said Halifax 'said' there is no need.

Can anyone help me with this? I am really worried that the offer will be withdrawn as I am not keeping with the terms they have imposed.

Thanks for reading.

sgh1976

Did you get the mortgage offer before September this year?

naijapower

The choice is yours. Personally i would follow what my broker says and hold him liable if things go wrong. You have come this far and surely you dont want to lose.
The important issue here is - so long as you can afford all these commitments, then by all means go for it. If you can afford the payment arising from paying deposit from CC and it fits affordability then i feel it is okay.
Solicitor is strict but they re right cos they have to report to lender as well.

Wagesbird

I got the offer 1 week ago, so November.
Will the Halifax check though to see if I have paid off the cc's?

Cazza

Wagesbird wrote: »

I got the offer 1 week ago, so November.
Will the Halifax check though to see if I have paid off the cc's?

Unlikely, as they will argue that you knew the terms of the mortgage and that they expect you to abide by them. Potentially they could though, there is another thread at the moment from someone who has exchanged contracts and has one week to go until completion but has just had their mortgage offer revoked.

I'd go back to your broker and kick up a fuss about getting a new offer, it is perfectly possible for Halifax to amend the clause to state that your cc balances need to be reduced to £4,800 by the date of completion. Someone, either the broker or probably Halifax, is being lazy.

sgh1976

I had cc debts of £12k and have managed to get this down to £5k over the last few months and this would have been paid off until my mortgage broker advised me that Halifax now need a 5% deposit

Just sounds odd that you got the mortgage offer and then told tabout funding the 5%.

Since September Halifax have introduced the 5% rule, so I would have thought when going through things with your FA he would have to say there and then where the 5% is coming from, to enable a mortgage offer to be made.

Where abouts are you buying?

Wagesbird

He told them it was from the sale of my current house, but I am going through a divorce and the money left over from that will be split between 2 and just about covers what debt we had along with solictor, estate agent fees.

They obviously havent asked for proof of this though.

The mortgage broker says its all fine, but I need reassurance.

He told me about the 5% before my mortgage offer. I also told him I would have about 4k left on my cc, and I think he hasn't told the Halifax about this to make sure the offer went through.

I cant risk the Halifax turning round last minute and withdrawing offer!

sgh1976

Wagesbird wrote: »

I think he hasn't told the Halifax about this to make sure the offer went through.

I cant risk the Halifax turning round last minute and withdrawing offer!

Pretty poor on his side of things!! Surely he has put your offer at risk with this stance.

I'll back out now as my knowledge is very limited and I don't want to confuse the matter anymore

Wagesbird

By the way....I am buying a new build in Northamptonshire.

Thanks

Wagesbird

If there are any mortgage brokers out there, I would be interested to hear their opinion on the above?

Thanks:mad:

Cazza

Wagesbird wrote: »

If there are any mortgage brokers out there, I would be interested to hear their opinion on the above?

Thanks:mad:

That's what I'm qualified as, although I haven't worked in the industry since last year.