mortgage offer

marie1981_2

Hi we are first time buyers with a mortgage approval recieved today from the Halifax. On the last page of the offer it states that the loan we current have should be paid off before the mortgage is taken out. I queried this with our mortgage adviser who advised us that Halifax would not check that this has been paid so continue to proceed. Has anyone else been in this position? I find it hard to believe they wont check!

Firewallrob

They won't check :cool: Your solicitor would be the one that would or wouldn't ask for proof.

Problem could be if you have repayment problems in the future - it's so they can't be accused of risky lending, by stating this.

marie1981_2

Thanks for the reply. I've spoke to the solicitor who said pretty much the same thing. Repayment will be no problem as we have budgetted to pay over an extra £200 a month in over payments to the mortgage. Fingers cross. House buying is so stressful!!!

Hopejack

Marie - can I ask how long it took for your offer from the Halifax? My buyers are using them and we've been waiting ages - can't help thinking there is an issue with their mortgage!!

herbiesjp

It looks like that in order to meet Halifax affordability, and get the mortgage amount agreed - you need to clear the loan.

It may well be that the adviser ticked the box that stated you would be clearing the loan, in order to get the mortgage amount agreed.

Not adhering to the T&Cs of the mortgage offer, would mean that you would be in breach of those T&Cs. For your adviser to tell you that the lender will not check, is plainly irresponsible, and demonstrates that they are concerned about your situation.

Always be above board and you will not have sleepless nights, and worry about what will happen if the lender finds out - not to mention your affordability will improve.