Mortgage Agreement & repaying a loan

mrpootle830

Hi,

I've recently applied for a mortgage with a major bank and am at the stage where the application has been reviewed by the underwriters and accepted and I've signed and returned the 'agreement'. As part of the discussion with the Branch / underwriters I was told in order to be accepted I would need to pay back an outstanding £9k loan with a different bank before the mortgage was drawn down. Essentially I've had to borrow money from family to do this whom I shall repay after completion.

My question is that having received the official 'agreement' to loan the mortgage funds, no where did it mention about the requirement to pay back the loan, So whilst I've not signed anything saying I'll pay the loan, the bloke at the local branch has an email saying I'd do this, therefore am I still legally obliged to do this or have the bank made a boo boo and under the terms of the agreement I've signed are they're committed to giving me the funds and it's up to me if I pay the loan as a moral obligation.

Regards

mrpootle

poppy10_2

Are you sure they didn't say you had to repay the loan prior to completion?

Dave_Ham

The document you need to check is your full mortgage offer document.

On one of the very last pages there will be conditions of this offer and would usually state that x loan needs to be repaid. The solicitors would verify this as part of there work on behalf of the lender.

If it is not in the offer, then not essential and will not prevent drawdown of funds...

Thrugelmir

The mortgage offer may not specifically refer to the loan you have, but be of a more general nature.