No obligation to clear credit card balance?

freddieD

Thrugelmir wrote: »

Based on the further information you have given. The new lender would appear to be expecting you to clear the majority of your debts from the sale of the property. They accept that there may be a balance left on your cards. As many people use their cards regularly then clear then every month.

Clearing the bulk of what I assume to be a sizable amount of debt is therefore a condition of the mortgage. Should you not so then technically you would be in breach of mortgage terms and conditions. If the lender so wished they could enforce such remedy as allowed by the contract.

Lending is based on trust. Break the trust and you'll have no defence.

Still no answer to my question: How long is their piece of string

Dan-Dan

try asking them?

ValHaller

freddieD wrote: »

Still no answer to my question: How long is their piece of string

Everyone here says £1, because it is plain that this is the only answer you really want to hear. Plus you won't give any of the information requested to begin to make an assessment. So £1 it is.

But, assuming you have given your information to your lender, your lender will give you a better answer. Assuming your broker will let you talk to them. And if he doesn't let you talk to them, why not is a more pressing question than how long their piece of string is

freddieD

ValHaller wrote: »

Everyone here says £1, because it is plain that this is the only answer you really want to hear. Plus you won't give any of the information requested to begin to make an assessment. So £1 it is.

But, assuming you have given your information to your lender, your lender will give you a better answer. Assuming your broker will let you talk to them. And if he doesn't let you talk to them, why not is a more pressing question than how long their piece of string is

Thanks for telling me what I want to hear, do you also know that what I want to hear is that you give me the money, instead of the mortgage company?

Jellybean_Jo

Have you actually asked them to clarify this? I would think they're in a much better position than any of us to answer that question...

Thrugelmir

freddieD wrote: »

Still no answer to my question: How long is their piece of string

Their string. Their rules.

Are you willing to stake the property as the wager. Potentially at the worst that's what you are playing for.

Goldiegirl

freddieD wrote: »

The idea for the mortgage was to use some of it (I need less than the are offering me for home improvements) to consolidate debts.

I used to work for the Halifax.

When your broker keyed the application in to the Halifax system, he would have entered details of all your debts - then the system asks if the debts are to be cleared on completion of the mortgage.

For the ones that are to be clesared he would have entered Y for Yes. For the ones not to be cleared he would have entered N for No

If a mortgage is being advanced to clear debts (which you have advised us is going to happen) it was standard practice for a special condition to be added to the mortgage offer saying that debts must be cleared on or before completion of the mortgage.

The amount of debt that the Halifax expects to be cleared is the total of all the debts that your broker keyed a 'Y' next to.

Halifax is unlikely to check that you have actually cleared these debts.

BUT

If you go to them for help or assistance in the future, e.g for a further advance or for help with arrears because you cant afford the mortgage, they will almost certainly check your debt situation. If they discover you haven't paid off debts that were a condition of the mortgage offer they would take a very dim view of it, and would be unlikely to give you any help at all.

Thrugelmir

Goldiegirl wrote: »

Halifax is unlikely to check that you have actually cleared these debts.

Why unlikely?

Perhaps there's been a change of policy from the board or risk management team recently. Following the publication of FSA policy that banks must adopt.

freddieD

Goldiegirl wrote: »

I used to work for the Halifax.

When your broker keyed the application in to the Halifax system, he would have entered details of all your debts - then the system asks if the debts are to be cleared on completion of the mortgage.

For the ones that are to be clesared he would have entered Y for Yes. For the ones not to be cleared he would have entered N for No

If a mortgage is being advanced to clear debts (which you have advised us is going to happen) it was standard practice for a special condition to be added to the mortgage offer saying that debts must be cleared on or before completion of the mortgage.

The amount of debt that the Halifax expects to be cleared is the total of all the debts that your broker keyed a 'Y' next to.

Halifax is unlikely to check that you have actually cleared these debts.

BUT

If you go to them for help or assistance in the future, e.g for a further advance or for help with arrears because you cant afford the mortgage, they will almost certainly check your debt situation. If they discover you haven't paid off debts that were a condition of the mortgage offer they would take a very dim view of it, and would be unlikely to give you any help at all.

Very good answer, thanks. So the broker needs to come clean and tell me which of the debts he says I will clear on getting the mortgage. Still it does not explain why the Halifax did not specify an amount. I said he was dubious as he could have said that I am clearing all the debts so I would have no money left for my home improvements. I do not want to deal with this broker anyhow. Another broker told me: go and apply directly to the Halifax and cut the fee he is charging of £1500+

JimmyTheWig

freddieD wrote: »

I would have no money left for my home improvements.

I thought you were selling the house to pay off the mortgage and the rest of the debts?