Nationwide mortgage accepted. Special conditions

Lee1982

we're first time buyers. We received from the solicitors on saturday the mortgage deed and a letter to sign. the only special conditions was'Barclay credit card x2 to be repaid on or before completion ( balance approx £1000 each) ' this has the potential to throw a spanner in the works as this is the first we have heard of it. Also the amount to be repaid is wrong. What do we do about this. I can't sign the deed and letter until we establish what is to be done. Also if these credit cards have to be repaid as laying our hands on a further £7000 is a very very impossible ask.
Should we just ignore this and plough on? We were hoping to have everything done by now and hoping to move in in literally two weeks. Also this is the first we have heard of it. Causing much stress so close to sealing the deal. Any help or advice would be very welcome

monty-doggy

If each credit card is 1000 how is it you need to find 7000?

holly_hobby

NO, do not plough on regardless.

The repayment of the credit cards are a condition of mortgage offer (due to affordability), which means that if can't meet this requirement on completion, you can't proceed.

Have the figs corrected, and see if this changes the requirement, but if not, and you can't repay the os balances - you need to withdraw from the pch or seek an alternative lender, whom may not have this requirement (broker would be best if you wish to seek this route).

Hope this helps

Holly

kingstreet

Who told Nationwide these commitments would be repaid? You, or the person submitting your application?

Are you short on income? Would you have been able to borrow enough if these commitments aren't repaid?

Use this to find out;-

http://www.nationwide-intermediary.co.uk/calculators/aff_calc

Lee1982

They got it wrong monty. Not even solictors pay attention it would seem. I owe 2k my wife 5k on credit cards. So 7k in total. Kingstreet it certainly wasnt us. Must of been the broker. Ive left a message for her to get in touch as soon as she gets in. I know we could 100% afford the morgage. Its cheaper that renting by far

holly_hobby

May not have been either, but a Nwide UW requirement of offer.

Hopefully your broker will shed more light, and get involved in this.

Holly x

kingstreet

Nationwide operates a strange system which is a bit counter intuitive. You enter "total outstanding credit card balances" then "credit card balances being cleared on or before completion."

You also have to make a separate entry for each applicant, so four pieces of data altogether.

Those who don't use the system often can get confused and put the wrong figures in the wrong place.

Provided affordability is good using the calculator I linked to, there should be no problem. Your broker needs to do a "Material Change Form" and upload it to the case on NFI. Then a revised offer can be issued.