Woolwich Mortgage confusion – expert advice needed

MrPoor

I have recently received a Woolwich mortgage offer through the post and I am a little confused by the following points mentioned on it:

(1) On the WHAT TO EXPECT NEXT section, point 4 states “A £35.00 completion fee will be deducted from your loan before the advance funds are sent to the solicitor/conveyance” :mad:

- Can someone please clarify what exactly this is and what impact it has on the mortgage they are giving me? I am contributing a 15% deposit and will pay the lenders fee (£999) seperate.

(2) On the supplementary mortgage conditions section, there are two points that I am confused about:

“Balance of fee to be deducted on completion £1,034.00” :mad:

And

“You must repay the following commitments in full within 30 days of completion of this mortgage without taking on further borrowing:” Then it goes onto list my debts, around £18K


- Can someone please clarify what exactly this is? The last point is a bit worrying since if they mean I must pay of my debts within 30 days of moving into my potential new house then it is not going to happen, there is no way in hell I can afford to pay of that level of debt in such a short time L I guess this means that I have not got the mortgage then? If so why could they not tell me this at the start, instead of telling me that I passed all the relevant checks, could afford the mortgage and then making the offer?

I’m not an expert so please be kind if my questions are stupid and answers obvious. I would appreciate any help or advice. I have tried contacting the Barclays bank advisor all day but been unable to get through to him.

happybroker

1) This will, I feel, be the telegraphic transfer fee in order to get the money to your solicitor on time.

2) i) this will be the above £35 and the £999 "lenders fee". They will be deducted from the money sent to your solicitor and you will make up the funds. The end result is the same as you making the payment up front to your lender.

ii) Your application form obviously stated that this unsecured personal debt would be repaid either before, on or within 30 days of completion. The assessment of your ability to afford the mortgage (in Woolwich's eyes) will have been made on the assumption that these debts were to be repaid.....if this isn't the case, and your application says otherwise, then it's an issue I'm afraid.

Has this been done through a broker or directly with the bank?.....it sounds a little like who ever has organised this has tried to "make it fit" if that makes sense.

Dan_1976

Happy is spot on, other than if you went direct you may have applied with no plans to pay the debt off, but Woolwich want you to.

WIthout alerting my keyboard warrior brothers, in most cases they will not chase this up. The solicitor may mention it, but 90% of the time nothing happens. If they were really bothered they would have said on completion.

If you fail to pay and the court look at your case, they can say they told you so.

MrPoor

Dan_1976 wrote: »

Happy is spot on, other than if you went direct you may have applied with no plans to pay the debt off, but Woolwich want you to.

WIthout alerting my keyboard warrior brothers, in most cases they will not chase this up. The solicitor may mention it, but 90% of the time nothing happens. If they were really bothered they would have said on completion.

If you fail to pay and the court look at your case, they can say they told you so.

I went directly with the banks advisor. So it looks as if he has "fiddled" with my details to make my application fit? I'm a little confused since no where in the entire process did anyone from Barclays (underwriters inc) ask me how I was going to pay off that debt 30 days after completion?

Surely, whilst processing my application this would be an important question to ask if they were under the impression I was going to pay off my debt within 30 days of completion? They asked questions related to my affordability, proof of income ect so this would be a logical question?

When you say the court will say "I told you so", can you please expand on this? Could the scenario happen, where I keep quiet, move in then one year later during an audit woolwich come back to me and ask to prove that I paid of all debts? Obviously I would not have, so I guess they can boot me out of my home?


Gutted. All that stress of getting a mortgage, saving, application, passing credit check ect only to fail in last hurdle

Dan_1976

I would say if you went direct that he did not fiddle. It may have only just got by underwriting so they put the claus in.

If your affordability was not good enough they would have been stronger with the condition.

If you dont pay, and it goes to court. Woolwich can show on the offer that you failed to clear the debt so it would be easier to repo you. If they left it, the court could hold things up as they should have never have granted you the loan.

stinky985

Dan_1976 wrote: »

I would say if you went direct that he did not fiddle. It may have only just got by underwriting so they put the claus in.

If your affordability was not good enough they would have been stronger with the condition.

If you dont pay, and it goes to court. Woolwich can show on the offer that you failed to clear the debt so it would be easier to repo you. If they left it, the court could hold things up as they should have never have granted you the loan.

Sorry to hijack the post, but i was looking at a similar 'Supplemtary Mortgage Condition' issue though outstanding amount (after paying off a loan listed )will be £2k. It is still an issue paying it off within 30days though. (e.g. i cant but intend to clear asap).
Are you saying that this could be an issue only if you dont pay your mortgage? Do we know how likely it is to be checked out? i will be saving several hundred pounds a month with my remortgage) and never miss a payment so i cant really see it being an issue to me, though if it will be to the Barclays/Woolwich, then i'm up the creek without a paddle. And i bank with and have my salary paid into my Barclays account that i have had in some shape or form for 26 years.

stinky985

OK, i'm answering my own post but it may help some others in the future.
According to my solicitors all conditions are binding and they will not complete if they think that any condition would not be met. So, Supplementary Mortgage Conditions DO MATTER.

In my case the Mortgage Broker is requesting an amended offer from Woolwich to be sent out. According to the Broker this should not be an issue in my case, as it is definitely affordable. I wait to see if that is the case, but for info this may help someone.