Mortgage conditions query

getmore4less

VIGILANT22 wrote: »

the solicitor is supposed to see all conditions are met...

Won't that be the one acting for the lender?

dannyb123_2

Won't the lender do a final credit check before completion to check they have been paid ????

getmore4less

dannyb123 wrote: »

Won't the lender do a final credit check before completion to check they have been paid ????

within 30 days of completion in the OP.

Dan_1976

If its checked I will eat my hat.

Anyhow in so many cases client would pay them off then when you see them in 2,3 or 5 years or whenever, they have the debt and more!!

camper_1982

You say you have the money as inheritence, so why dont you settle all the debt so you are not paying interest on it, and then save the money you were spending on payments each month in a savings account. That way you have met the conditions and you are continiuing to save as well. Or you could pay 70% of it off and keep the rest in savings in case they do check up.

I know its not what you really want to spend the inheritence money of, but you can save the money each month if you can confortably afford those repayments with the mortgage.

jwil

Thank you for all of the replies. We passed the affordability test on the mortgage even with the debt, and had indicated in the application that my husbands debt would be paid off, but mine would not.

The inheritance is my husbands from when his mother passed away recently, he has already put half of it into the house so we could get it, and the rest was going to be his to enjoy for himself and pay off his own debts. Unfortunately now it is tied up paying off my debts too - which are far larger than his, and although I will be paying him back, it makes me feel very guilty because he can't now do what he had hoped to do.

We are going to pay them all off (have already started doing so), we don't want to be that unlucky couple who they decide to check up on, and it is a big benefit to me as all my debt will now be interest free but it doesn't make me feel any better!

It said in the conditions that we had to pay them off without taking additional borrowing so I couldn't have done it that way getmore4less - that was my initial thought!

Monkey_Joe

My sister had the very same condition on her Woolwich mortgage for her shared ownership property. She and her husband had around £22k work of unsecured debts.

Since it was shared ownership their mortagage was pretty small, around £50k for a 30% share of a flat. They are both teachers and had a combined income of around £60k so affordability was not an issue.

The queried the condition with both their barclays mortgage advisor and solicitor since there was no way in hell they could pay off their debts within 30 days of completion. Both mortgage advisor and solicitor told them there was nothing to worry about and that Woolwich will never look into it and that it only became a problem if you don't meet your repayments.

In summary, its just a standard condition they include these days to protect themselves during scenarios where people fail to meet payments and stops them from telling the judge that the lenders were irresponsible by lending to them in the first place. By including this condition, the lenders can tell the judge that they were aware of the clients debts and asked them to pay it off within 30 days and that the client agreed to this condition by signing and returning the mortgage offer.

If you meet your payments you have nothing to worry about and can spend your inheritance on what you want.

VIGILANT22

QUOTE Monkey_Joe

"If you meet your payments you have nothing to worry about and can spend your inheritance on what you want." QUOTE


Thread: Has my sister been badly advised by Barclays and her solicitor?

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Monkey_Joe...I feel you should be more careful with what you post......

Monkey_Joe

There is a significant time difference between each post.

What I wrote above is what I originally believed. However, after reading other threads like this I became to doubt my original belief and hence made another thread asking people what they thought.

Sorry to OP and anyone else who took what I wrote above as fact, should have made it more clear.

However, the facts are that this is what my sister was advised by both Barclays and her solicitor and she is yet to be contacted. However, the condition and its wording is worrying.