Mortgage Offer - Other Conditions

Twinkle1977

Hi Simon
I think the confusion is the wording and exactly what it means. My query, was whether they are referring to all outstanding credit commitments, being paid by completion when some people say it doesn't have to be on completion but within a 6 month window, others say in full, others say continue paying your commitments.... I don't want to be in that situation that I understand it to be one thing, but then at the final hour, halifax or whoever check and see that everythings not been cleared, so cancel.

My mortgage offer has already been approved, credit checks run etc etc - so really, the question here is, do they run a second round of credit checks on completion day. The ex-halifax employee didn't seem to think so.

NewBe

"You have declared an intention to repay some or all of your outstanding credit commitments"

Is it one, or the other?

I think the wording is confusing, hence why I queried it with both my MA and Solicitor. Both replied "Its standard wording, nothing to worry about".

kingstreet

When completing the mortgage application, the adviser is asked to lump together all the monthly payments for credit, such as loans and HP.

To that, we are asked to add 5% of the balance of any credit card debt.

We therefore enter a total monthly credit payment, say £300 for example.

If the applicant intends to pay off some of their credit, we are then asked to enter the monthly payment (or 5% of the credit card balance) for the commitments being repaid.

If it was all of it, assuming the above example, we would enter £300. If only some of the credit is being repaid, we'd enter the monthly amount which corresponds, so perhaps only £150.

Halifax therefore does not stipulate what should or shouldn't be repaid, only that it is aware you intend to "repay some, or all."

NewBe

Twinkle1977 wrote: »

My mortgage offer has already been approved, credit checks run etc etc - so really, the question here is, do they run a second round of credit checks on completion day. The ex-halifax employee didn't seem to think so.

Ask yourself, If you had told them I will not be repaying all my debts before completion, would they have still approved the mortgage?

Have a play with their affordability calculator and see what difference both scenarios make.

http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspx

Speak to your MA / Solicitor - that's what you pay them for

AndyT678

Hi

I don't understand the confusion. You have some debt now. Between now and the completion date there are only 3 possible things that can happen to the existing debt:

1. You repay SOME of the debt
2. You repay ALL of the debt
3. You repay NONE of the debt

Based on what was posted the only interpretation that makes any sense is that the lender is precluding option 3. And since SOME is not defined then as long as the debt at completion is lower than the debt now you will have repayed SOME of the debt and complied with the condition.

Miss_Marple_2

AndyT678 wrote: »

Hi

I don't understand the confusion. You have some debt now. Between now and the completion date there are only 3 possible things that can happen to the existing debt:

1. You repay SOME of the debt
2. You repay ALL of the debt
3. You repay NONE of the debt

Based on what was posted the only interpretation that makes any sense is that the lender is precluding option 3. And since SOME is not defined then as long as the debt at completion is lower than the debt now you will have repayed SOME of the debt and complied with the condition.

I think 'some' has been defined - on the application form.

I am assuming that Halifax are being a bit lazy and using the same wording for all offers. I think the wording means that on the application form, the box was ticked to say that a certain level of debt would be repaid before completion. Halifax appear to be saying that whatever you put on your application form is the amount you need to be repaying.

So it's all dependent on whatever the application form said.

My offer from Skipton was very clear - they went as far as to list the specific credit cards that needed to be repaid (as they had been entered on the application form and ticked as being repaid before completion and so could be ignored for affordability)

vacheron

We had the same wording on our application form despite us having (and declaring) that we had no debt whatsoever when we applied directly with Barclays for our mortgage.

No mention of it was made from our very competent solicitor throughout the process, so I think this is just a standard safety net phrase which is often left in by the mortgage company for contingency reasons.

In your case it says "some OR all" so unless there is more specific detail written elsewhere regarding this, just pay a few pounds off one of the balances and you will have met your contractual obligations.