Mortgage help please

barrywhite

I am hoping that someone will be able to help me. I have found a property I like and received a mortgage in principle from Alliance and Leicester. A&L have worked out what I can afford by taking into account the fact that I plan to pay off a loan with some equity from my current house sale. What will they require from me to confirm that I have paid this off? I know with Nationwide I previously had to sign some sort of letter to say that I would but never did due to a change in circumstances. I managed to continue to pay the loan and my mortgage with no problems. Hope this makes sense.

The problem is that I am not sure I will be able to pay this off prior to the mortgage going through but will be able to shortly after I have moved in to the property.

homer_j_3

If you have disclosed to the lender that you are paying the loan off then that is what you should do. Lenders work in different ways and they all have the right to check that it is done or get you to confirm through signing that you will do this. Some even put it on the solicitors shoulders to provide confirmation of this.

The reason why they do this is because they have to be seen as a responsible lender and not be putting you under financial pressure. Now a lot of lender may not check whether it gets done or not but I would think very carefully about what you are doing.

Why cant you pay off on completion but shortly afterwards?

barrywhite

Thanks for your quick reply. The reason I can't pay it off straight away is that it is part of a slightly messy marital split. Does anyone know A&L's policy on this.

homer_j_3

have u asked your broker if its still affordable without repaying the loan?