Loan after Mortgage Offer

FTB_2012

Hi,

I was hoping someone could offer me some help.

I had credit card debt of around £5k which was disclosed when my partner and I applied for a mortgage with Santander. We have had the mortgage offer from Santander on 27th January and exchanged contracts today with a completion date of 23rd March so that we avoid paying stamp duty as we are first time buyers.

I stupidly had a loan agreed from the Halifax on 3rd February for £5k which I immediatley used to settle my credit card debt and cancelled my credit cards immediatley. The re-payments on the loan are less than what I was paying back on the cards.

In hindsight I would never had applied for the loan with Halifax as I am now worried that Santander will not release the mortgage funds as there has been a change in my financial circumstances.

The loan isnt showing up on my credit report yet but sure it will show up shortly.

Does any one have any experience of using Santander and how they might view this?

Thanks for your help.

betmunch

It is a change in your material circumstances like you say. If they find out without you telling them it will be worse than if you tell them.

Personnally I consider it a positive change, but there is no guarentee an underwriter will feel the same way.

I think you should tell them and keep your fingers crossed its OK. At least by telling them you also get your chance to say the Credit cards are paid off which you wouldnt get if they find out themselves.

kingstreet

If your case is pulled for random audit, it will be discovered and you risk having your mortgage offer withdrawn.

If it isn't everything will probably go through normally to completion.

As a matter of interest, did your mortgage application say your credit cards would be paid off on or before completion?

FTB_2012

Thanks for the quick replies.

Our mortgage application didn't mention anything about repaying the credit cards prior to completion.

I will speak to the Abbey and see what they say, hopefully it will be able to be resolved.