Completion Question

r83_2

Hi,

We have received our FTB mortgage offer on Friday and instructed the solicitors to proceed with checks etc. I have just received the mail from Solicitor statin they have received the mortgage offer letter from halifax etc. It has Special Condition mentioned in it which reads -

Completion takes place on the condition that repayment of your outstanding credit commitments.

I am just baffled as to what it means. Can someone please advise?

I am just curious and can not bear the pain of waiting until tomorrow morning to find out by calling solicitor. I do not have any debts at all apart from my credit card which gets paid in full via DD.

Thanks,
R

kingstreet

It means you must repay any outstanding credit commitments you currently hold, on or before completion. If all you have is a nil balance credit card, this will give you nothing to pay off. Ensure your solicitor is satisfied with this.

r83_2

As hoped, Kingstreet to the rescue lol

Ta for your reply mate. I am wondering why would mortgage offer does not mention anything of that sort and solicitors letter does? I thought it was relating to the outstanding credit commitments in terms of buying the property i.e. Deposit payment & any conveyance fees, but hey ho, clearly I was wrong !!! How would they be able to check in terms of if I have nil balance on credit cards? Because far as I am aware of credit file runs month behind?

Thank you anyways, I will speak with the solicitor in about 1 hours time to put my mind at ease

Have a lovely day

kingstreet wrote: »

It means you must repay any outstanding credit commitments you currently hold, on or before completion. If all you have is a nil balance credit card, this will give you nothing to pay off. Ensure your solicitor is satisfied with this.

kingstreet

It's an odd thing to put in your solicitor's letter. You say it isn't in the actual offer letter?

I wonder if whoever produced the paperwork accidentally left it in?

r83_2

Right - I have spoken with the solicitor now. That was a condition in our mortgage offer. When we met our broker, he asked us series of question and one of them was what were the outstanding balances on each credit cards (since we had no loans in past good 6 years or so). One of credit card was £55 which was noted down as Total Monthly commitments. Now this could be misleading, it isnt a commitment exactly. We pay what we use on our credit card in full every month via DD, so dont know if this needs correction? I will take your expert opinion on that.
But speaking with solicitor they informed it being a mortgage offer condition and referred me to Mortgage broker. Speaking with broker, he informed me that do not worry about it if we pay in full via DD?

Does this sound right to you? Below is what our Halifax application form looked like -

Total monthly credit commitments
(incl. mortgages) to be repaid on or
before completion of this
mortgage (£)
£55.00

I think this is what being conditioned in our offer letter. How worried should I be over this?

Thanks,
R

kingstreet wrote: »

It's an odd thing to put in your solicitor's letter. You say it isn't in the actual offer letter?

I wonder if whoever produced the paperwork accidentally left it in?

kingstreet

TBH it's upto your solicitor to ensure any credit commitments are repaid. He should be contacting Halifax to ask them what they want repaying and what evidence they want of repayment. He is acting for them, as well as acting for you.

It should be quicker for him to get the condition removed if it is there erroneously, although satisfying the condition appears to be a straightforward matter.

Perhaps the broker working on it his end and the solicitor at the other end might just get it done quicker?

r83_2

Okies. Just emailed to the broker and had the below response:

Hi R,

Don’t worry about this. This just reflects a 5% payment on an assumed credit card balance (from memory, I think your only commitment is a card you clear monthly?).

If this is the case, you will not need to prove anything to your solicitors, and I will gladly talk to them should they push you on this.

Hope this helps.

Many thanks,

Ian Megee

Strange !!!

kingstreet

Pass that on to solicitor to make sure he agrees. As I mentioned, if the solicitor thinks he's not complying with his client's instruction (Halifax not you!) he may not undertake completion until he gets clarification from them.

r83_2

Done, put 2 together in an email. Lets see how it goes, and I thought getting mortgage was the hardest part of all this, hey ho!!!