Mortgage Offer with conditon

sivs

Hi All,

I have been accepted for a mortgage with Nationwide with a condition that states all existing debt needs to be paid off on or before I complete.

Am I right in think that the solicitors will keep the balance that is owed and pay this on my behalf? If so how do they get the correct figure to pay as my credit report is show balances that are incorrect.

I do have the funds to do this myself but it mean taking money out my ISA which I really don't want to do..

Any help would be great! :j

kingstreet

You pay them off and supply evidence it has been done, if requested.

Did you say you would pay off these commitments on the application?

[Deleted User]

sivs wrote: »

Am I right in think that the solicitors will keep the balance that is owed and pay this on my behalf?

No - the lender will make the advance on the condition that you pay off the debt specified. You'll need to pay from your own funds.

They may check afterwards that you have done so.

sivs

I am definitely going pay the debt off, it would be easier if they use themoney from the mortgage. Currently theproperty is mortgage free so I am doing this get some capital out of the proeprty.

I have spoken to my FA who has confirm the Sols will hold it back but then the Sols say they are not sure...

kingstreet

Ah. Right. I didn't realise it's a remortgage.

Usually, the offer is worded;-

This offer is issued on the understanding that the following commitments will be repaid on or before completion of this loan:-
Credit Card with XXX with an approximate balance of £YYY
Credit Card with AAA with an approximate balance of £ZZZ.

While these debts may be repaid from the proceeds of this loan, they may not be transferred to any other lender. Your ability to afford this loan has been assessed on this basis.

sivs

Yeah it does say that.

Will this make any difference?

Just want to know if I need to get the funds out of my ISA or not..

kingstreet

It says you can use the proceeds, so the solicitor does it and pays you the residue, or pays you all the money and you do it and provide the evidence required, if any.

Either way, it's for the solicitor to decide this and tell you what it wants you to do.

sivs

Ok brillaint, thanks.. I guess I will have to give the Solicitors the up to date balances as they are different than my credit file?

kingstreet

sivs wrote: »

Ok brillaint, thanks.. I guess I will have to give the Solicitors the up to date balances as they are different than my credit file?

Let them have copies of the latest statements, or loan redemption figures, fairly close to completion.