Mortgage conditions PLEASE help.

RatgirlK

I got a mortgage offer through with the following condition. "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 my mortgage adviser that I could not repay more but would be upping repayments after completion as mortgage is less than my rent. Now my solicitor says I'll be in breach if Halifax find out but doesn't know if she is required to provide proof. I've tried to contact my MA but he's being very hard to get hold of since I made my application.

What can I do?

Wh05apk

I would guess to meet their affordability criteria, your advisor has had to state that you will be repaying these commitments.

As your solicitor states, you will be in breach, but I have never known a lender follow up to check - BUT, that does not mean it would be right not to repay them, the choice is ultimately yours, although I would suggest speaking to your advisor to see if they do all need to be repaid to meet their criteria, or did the advisor just "assume" they would all be repaid?

RatgirlK

He has promised to call me back. I have just put it through Halifax own affordability calculator and I'm well within range without paying them. obviously I'm meeting the monthly payments and already paying extra when I can. My loan finishes in December as it us. Grrrrrr

RatgirlK

Have seen some info on net suggesting that they give up to 6 months grace, if I complete in June that's hunky dory. Just hoping I have't set of alarm bells with much solicitor now.

Wh05apk

If you meet their affordability with the loans remaining get your broker to have the condition removed.

I suspect that now your solicitor is aware, they have a duty to declare to Halifax.

RatgirlK

Still trying to get hold of MA to confirm what he put on my application. TBH I'd rather get reassessed and declined than buy my first house in fear of repossesion!!!!! Next step could be to approach Halifax I guess. I can prove I've met my rent which is £100pcm higher than mortgage for the last 5 years.

Wh05apk

I Don't think you need to worry about repossession.......

What you are currently paying in rent will be irrelevant to Halifax, they work their affordability based on standard "formulas".

From your referral to "mortgage advisor" did you do your mortgage in a Halifax branch?

RatgirlK

Nope, it was an adviser with my estate agent. I'm just concerned that we'll exchange contacts and then this will be an issue. I'm kinda pinning my hopes on the some or all part of he clause tbh.
Very annoyed at my adviser not returning calls etc.

I guess I've been spooked by my conveyancer but I did say to her I was just enquiring as to what proof she would need not that it's a problem as statement would be generated after completion.

Goldiegirl

I used to work for the Halifax, although I left three years ago.

This is quite a common mortgage condition. The person who keyed the application has placed ticks by some of the credit commitments, to indicate that these would be cleared at or before completion.

The solicitor has done her duty by drawing your attention to the matter - when I worked there we didn't expect the solicitor to provide proof that the commitments had been cleared, and a check was not carried out after completion.

However, things could have changed - but I feel it would still be unlikely for them to check up on this point.

To be 100% sure, you'd need to clear the commitments at completion .... But you'll probably be ok if if you don't.

RatgirlK

Finally got a call back. Turns out he'd put my outgoings on credit as £280pcm l but I pay £210. It's all to do with the rate they take of repayment apparently. Technically I've already met it. Glad I've put my mind at rest. Hope I don't have deal with him again, not good for the blood pressure!