Condition on Halifax Mortgage Offer

gazfocus

We have had a mortgage offer from Halifax and there is a condition on it that states the following:

You have declared an intention to repay some of 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.

Except where such a mortgage is an outstanding credit commitment you have declared an intention to repay, we agree that any existing mortgage you have on any other property does not have to be repaid when you take out this mortgage.

So....my question is, how do we know how much of our 'outstanding credit commitments' we need to pay? Our solicitor has not mentioned any requirement to show her proof of anything being repaid, so do we 'ignore' this?

Thanks in advance

kingstreet

At application stage someone keyed in your monthly credit payments of £X, with £Y to be repaid out of that.

For example, if you have £10k on credit cards, you enter £500 in the commitments box. If you intend to repay £3k of that £10k, you put £150 in the "to be repaid" box.

How much you should repay would depend on who did what/what was stated on the application.

gazfocus

kingstreet wrote: »

At application stage someone keyed in your monthly credit payments of £X, with £Y to be repaid out of that.

For example, if you have £10k on credit cards, you enter £500 in the commitments box. If you intend to repay £3k of that £10k, you put £150 in the "to be repaid" box.

How much you should repay would depend on who did what/what was stated on the application.

Thanks - that helps. My MA said that he told the underwriters that we would repay all of our credit cards but would keep our current mortgage and hire purchase on the car, but when I asked about this condition he was unsure what the actual 'requirement' was in terms of the mortgage and seemed to believe that as the condition doesn't state a minimum amount, a minimum amount didn't exist..

Will anyone ask for proof that the credit cards have been paid off, and if so, what would we need to provide as proof?

sefilby

I am certainly no expert and I apologise if i am completely wrong.
I'd assume you should be able to submit (to your lender/underwriter and/or solicitor) a print out showing the funds being paid i.e. from your bank account & either a screen shot or statement showing your credit cards balance as £0?

kingstreet

Halifax does not yet require verification of amounts repaid.