Mortgage Offer - Other Conditions

snowcat123

Hi,

I've received an offer from the Halifax for a mortgage after weeks and weeks of waiting!

On the offer, under the section "Other Conditions" is says:

"You have declared an intention to repay some or all of your outstanding credit commitments. The mortgage advance has been assessed on this basis and it is your responsibility to ensure that these commitments are repaid. Completion takes place on the condition that such repayment takes place".

I told our mortgage adviser that we plan to pay of as much debt as possible but it's impossible to pay it all off by the time we aim to have the mortgage completed.

I'm worried now that the condition of getting the mortgage is that we pay off all our debts!

My wife thinks I've read it wrong but can anyone clarify?

I also intend to speak to our MA first thing but wanted some advice on here too.

opinions4u

Your solicitor shouldn't complete that mortgage unless all the debt referred to is repaid.

snowcat123

Is to be repaid all together before the mortgage?

snowcat123

Even my car finance is classified as a debt too! Does this need paying off too?

bigadaj

The quote says some or all of your debt is repaid, so you have to repay some but not necessarily all, so get clarification that what you can reasonably pay is sufficient.

lucyloo77

My mortgage offer from Halifax says exactly the same thing too. My broker has told me that it's standard wording and that it doesn't mean that we have to pay all debts off before completion, just that we have to keep paying them as usual.

Does this sound right though? Because it reads to me like it might indeed all have to be paid before completion (we never said this would be the case though)?

Really worried now...

ACG

your advisor has probably ticked a box saying that any credit will be repaid before the application goes through - ask for a copy of the application form if you havnt already got one. halifax are unlikely to check it so i wouldnt worry too much.

GMS

Saying debts will be repaid prior to compeltion means they will not be taken int account for affordbability. If they are not to be repaid the lender would need to re assess the application.

The onus is on the solicitor to make you aware of the condition but they are usually not required to repay or confirm they have repaid it.

As it is a condition of the mortgage it is ultimately the responsibility of the borrower to adhere to the terms

GMS

lucyloo77 wrote: »

My mortgage offer from Halifax says exactly the same thing too. My broker has told me that it's standard wording and that it doesn't mean that we have to pay all debts off before completion, just that we have to keep paying them as usual.

Does this sound right though? Because it reads to me like it might indeed all have to be paid before completion (we never said this would be the case though)?

Really worried now...

If the condition said 'Ensure all credit commitments continuoulsy paid' then your broker would be correct. As it states they are to be repaid then they are talking nonsense.

The broker has most likely excluded the debts to make affordability fit.

lucyloo77

GMS wrote: »

If the condition said 'Ensure all credit commitments continuoulsy paid' then your broker would be correct. As it states they are to be repaid then they are talking nonsense.

The broker has most likely excluded the debts to make affordability fit.

I don't *think* that affordability is an issue for us, certainly our broker has always said we're fine for this. Halifax offered at AIP stage to lend us £272k but we're only borrowing £125k - definitely not stretching ourselves that way!

I just can't understand why it's on there as we never said we ould repay in full now. My debts are just over £6k in total - a NatWest loan which currently stands at just under £4k and some small cc debts..

Jerm123

Hi Snowcat123,

Did you get your Mortgage completed despite the special condition imposed ? My mortgage offer have the same condition.