Mortgage conditions query

desperatelyinthered

I very rarely post but I am a lurker!

My husband and I have just received our mortgage offer from Woolwich/Barclays. In the supplementary mortgage terms it states:

You must repay the following commitments in full within 30 days of completion of this mortgage without taking on further borrowing:
Hire Purchase £19400

At no point did we discuss with the mortgage adviser repaying the car purchase and this was organised direct with Barclays (not through a broker).

I have done a quick google search and it seems that a lot of people say this is put in to ensure that the mortgage is agreed and it is not something that is checked on. We will check further with our conveyancer but I wanted to see if this was common and whether anyone had come up with any issues? Our main concern is that if we have this term taken out that they will offer to lend us less.

Any guidance would be appreciated (we are FTB's)

kingstreet

Crossed wires somewhere.

You need to tell Barclays you don't, nor did you ever, plan to pay off the agreement concerned. It will hopefully be an error which is easy to amend if you took the repayments into account when you worked out how much Barclays would lend.

If it wasn't taken into account, you can only hope it won't affect your affordability enough to end up with you getting a lower mortgage amount.

Wh05apk

I suspect this was done by the "advisor" to make it fit on affordability.

I have never known it to be checked, but that doesn't make it right, if they did check it, it could put you in a very awkward position.

Normally lenders will want to see proof of deposit for ftb's sufficient to cover any declared loan repayments as well.

MortgageChallenge2011

I would keep quiet. I am in the same boat as my mortgage conditions advise to pay off a credit card (£3k) out of the mortgage advance. For a start there wont be any money left over as its all needed + the deposit to get the house. If they wanted you to repay it where would they think you would get the £20K from if they say you cant borrow it? My condition stated a credit card, it wasnt named and there wasnt an account number. The chances of them checking are very slim. plus if you declare to them you are not repaying it the chances are highly likely they will reduce the amount they are offering. Getting a mortgage I have found is a nightmare now and I suspect like my application things were said to make it just fit.

kingstreet

I'd check what's in the instructions to the solicitor before I did anything else. If the solicitor has a request to see evidence of repayment it will have to be sorted out as that evidence is never going to be available.

Unlikely that it will be, but poor preparation...

_Andy_

MortgageChallenge2011 wrote: »

I would keep quiet. I am in the same boat as my mortgage conditions advise to pay off a credit card (£3k) out of the mortgage advance. For a start there wont be any money left over as its all needed + the deposit to get the house. If they wanted you to repay it where would they think you would get the £20K from if they say you cant borrow it? My condition stated a credit card, it wasnt named and there wasnt an account number. The chances of them checking are very slim. plus if you declare to them you are not repaying it the chances are highly likely they will reduce the amount they are offering. Getting a mortgage I have found is a nightmare now and I suspect like my application things were said to make it just fit.

Great, actively condoning fraud. Well done.

papa_echo

I'm in the same boat as the OP.
We applied for a Barclays / Woolwich mortgage and told the FA about the credit card debt we had and that we are in a position to have it all paid off by early 2012 and that we definitely wouldn't have it cleared within 30 days of completion. She checked that we could afford the repayments based on our incomes and said that it shouldn't be a problem. We then received the mortgage offer which stated that we have to clear the debt within 30 days of completion - which won't be possible. We've told Barclays and they seem to think that a revised offer may take at least a week - but this may then start to hold up the exchange on the new property - assuming that they agree to remove this condition. If they don't we may be in a spot of bother.