Hire purchase on conditions of mortgage?

barbs706

I have my mortgage advisor's direct number so I will ring her first thing 9 oclock tomorrow morning and see what she says.
Ill post follow up tomorrow
Thanks for all your help

holly_hobby

Good luck Babs

You must be stressed out ..

But listen ... there are plenty more fish in the sea if Barclays won't play nicely, and there is lots of support and help on here !!

Let us know how you get on ..

Holly

Senior_Paper_Monitor

Have you had a copy of the application - if so look for the section that lists your fiancial liabilities and there will probably be a tick box next to each item which says 'will this be paid off at the time of the mortgage' (or similar).

What does it say ?

I have a suspicion as to what has happened here - and it certainly won't be the first time.

barbs706

No I have not got a copy of my application. Only the mortgage offer. To be honest what you have said above, "will this be paid off at the time of the mortgage" sounds very familiar. Maybe when she was reading it on the computer she read it out loud? Im not sure, but definitly sounds familiar.
If she would of asked me though, I would of said no the HP will not be paid off at the time that the mortgage starts.
Senior Paper Monitor, what do you think has happened then?

holly_hobby

If that is the case, and the lender hasn't imposed this condtion for affordability/debt exposure reasons, you can ask for the mge offer to be amended accordingly.

I do hope that this is what has caused the issue .. as its an easy fix ..

Keep us all posted after you speak to them on Monday.

Holly

vacheron

barbs706 wrote: »

Vacheron, so did you have outstanding debts that they asked to be paid off in full? And you never heard from them even though you never paid them off?
That does all sound a bit more promising. I would of thought my mortgage advisor would have told me about it if it was a necessary, other than an old condition that they use to cover their self if I say missed a payment etc.

We had no loans or HP when we applied, yet something similar (though not as specific as yours as there were no items to list) was still present in the terms and conditions which is why I remembered it as it seemed a bit superfluous. That is why I believe it is a standard clause. I'll dig out the paperwork and see if I can see where I saw it.

Good luck with your investigations tomorrow.

Senior_Paper_Monitor

The clause on the OP's offer is clearly specific.

I would be highly suspicious (in the absence of the relevant paperwork to confirm it) that the bank employee(s) who has/have completed the application have indicated the £8,013 to be paid off in order to meet 'affordability' requirements. Without doing so the application would probably have been rejected.

They are presumably working on the assumption that most clients don't read the detail of the offer and many such requirements are both ignored and subsequently unchecked BUT that is a high risk strategy, although this one does say "within 30 days" and therefore less likely to be checked in arrears that one requiring it at the time of the mortgage completion.

There is a common suspicion that 'special conditions' of this sort are generally included to cover the bank's a!!e in the event of future problems rather than a condition that they will enforce.

If I am correct at my guess, it is yet another demonstration of a bank clerk (or two) processing orders for commission rather than advising.

As you have not had a copy of the application and/or a 'product confirmation' / 'record of suitability' letter (both of which are necessary under most compliance regimes) I can only assume this was a non-advised sale. This of course restricts the input from the bank to information, but they still have a liability to give the correct information.

barbs706

What a day...
Rang up Yarmouth branch first thing this morning at 9oclock to speak to my advisor. Turned out she was on holiday. So I rang the Lowestoft branch to speak to the other advisor who initially set up the application and she was on holiday too. Rang Gorleston branch, and they have no advisor's in on Mondays. The nearest branch that had an advisor in today was 30 miles away!
So I rang up the Woolwich to speak to someone directly. Apparently they could not sort it out over the phone, I would have to go in branch and speak to an advisor. At this point I was absolutely fuming. I couldn't believe that the mortgage help line couldn't give me any help on my mortgage. So I rang them straight back ready to give them what for. Someone else answered the phone this time. He was very helpful and explained to me that yes I would have to pay my hire purchase off if I was to take out the mortgage.
I explained to him that I would not be able to do this on such short notice so he has contacted the underwriters, and they are going to send me a new amended mortgage offer in the next 3 days.... IF they will even give me a mortgage without me paying the HP off!

So, long story short, I now have to wait 3 days to see if Woolwich will give me a mortgage and if they do, what the monthly payments will be etc.. Oh and as you can imagine I am not to impressed with Barclays. Basically had no mortgage advisor's in any branches within a 30 mile radius. Brilliant!

barbs706

Hi guys. Sorry to bring up an old thread but im finally all sorted now. The Woolwich underwriters apparently counted my car twice so I did not fit into the acceptance criteria. All sorted now though. Moving into my house on Tuesday!

katsu

Thanks for updating us and enjoy your new house.

Maybe next time consider seeing a proper mortgage broker as your bank staff don't seem to have given the service that a broker gives.