Mortgage offer

ciara1504

Hi first time posting on MSE so be gentle!

Have just received a mortgage offer from Halifax which has a condition that 2 of the cc's I have must be paid off.

I have my deposit and legal fees covered but hadn't expected them to request the cc's be paid off. I am considering taking a loan out to pay these off and pay the loan immediately back with my next 2 pay checks.

My question is, do Halifax run a final credit check before completing the mortgage where they would see the loan application?

Hippychick

I am pretty sure the whole point of them asking you to pay the cc is that you must do it without recourse to further borrowing.

If you can pay the loan back in 2 months can you not pay the cc's back that way without getting deeper into debt?

ciara1504

Thanks for the quick response.

I know that would be the most sensible thing to do, can i exchange contracts before clearing the cc or would I have to wait until this is done?

House is new build and developer is telling me house will be ready by xmas. Would love to be in it by new year!

Tuscan

i am supprised that a High st lender has entertained you with CCJ's. the impression i have had is that that they wont except any CCJ's even with a large deposit.

interested to know about this..

cheers

ciara1504

No sorry, when I say cc I mean credit card

Tuscan

sorry i miss read it got CCJ's on my mind lol, good luck with it

Wagesbird

Hi,

I am in the same situation, I have 2 cc to pay off before I move (mid December). I would like to know whether the bank will do this also.
I will have mine paid off literally the day before we move.

From what I can gather by reading on here and speaking to other people is that your solicitor will ask for proof on behalf of your lender. But then I have also heard that the banks dont bother checking!! What I do know is that you can't take a loan out to pay your cc off, this will just be the same as having cc's.

If you hear anymore I would be interested to know and vice versa.

Batchy

why if you can get a loan would you have a credit card balance outstanding...

Unless it was 0% in which case why would you want to take a loan out to pay it off?

Sorry may seem like im being harsh, but i see Credit cards as a tool, but not a form of finance anything longer than 30-45 days free credit.

Good luck anyway!

Cant be that much outstanding... do they also want you to cut them up as well?

or just zero, on deal of exchange then max'd out the day after?

Seems a bit naive of mortgage companies to me, why get solicitors involved for pete's sake!!!???

bmunky7

My mortgage offer was on condition of clearing outstanding debts within 60 days of receiving the mortgage funds. I think this is quite standard to give 30 - 60 days to clear them. Depending on when you actually complete you might have paid them off before then anyway.

Wagesbird

What bank was that? And did it actually state 60 days in your offer?
Did you have to show any proof?

kinglewis

bmunky is right... unless your solicitor is picky and demands final statements showing they are cleared.. you will have 30-60 days to pay them off. (If you don't clear them the bank won't check but it is your fault then if you fall into problems - not the banks which is what they want to ensure)

Ask your solicitor what he/she requires to prove this has been done. If they ask you to sign a disclosure you are ok.(The disclosure will get you to sign to say you agree to pay them off within a certain time frame) If they ask you to show final statements then the 'secret loan' is an option as the bank is unlikely to do another credit check after they have provided an offer but it can happen!! You have been warned!!

Good luck with it.. I am surprised you didn't know the cc had to be cleared as your mortgage advisor should have made this clear to you.