House buying process question please

downs523

so i went to see Natwest today as i am putting my property up for sale in the next few weeks and buying a house. I got a mortgage in principle agreed which was great!

i have a loan which i explained would be paid off with the proceeds of the sale of my property. She did my mortgage calculation excluding this loan with the understanding it would be paid off before the full application is made.

is this the case?

i sell my property, funds come through, i use some to clear the loan, apply for my mortgage, buy new house?

i thought the full mortgage application had to be done before this or am i confusing things?

i hope this makes sense, any help would be great

kiddakidda

downs523 wrote: »

so i went to see Natwest today as i am putting my property up for sale in the next few weeks and buying a house. I got a mortgage in principle agreed which was great!

i have a loan which i explained would be paid off with the proceeds of the sale of my property. She did my mortgage calculation excluding this loan with the understanding it would be paid off before the full application is made.

is this the case?

i sell my property, funds come through, i use some to clear the loan, apply for my mortgage, buy new house?

i thought the full mortgage application had to be done before this or am i confusing things?

i hope this makes sense, any help would be great

Normally, Your mortgage offer will state:

"Loans to be repaid on or before completion"

If you decide not to pay out of your own funds your solicitor will attribute some of the fund upon completion to the outstanding debt.

Trust the helps:)

downs523

I just wanted to make sure she was giving correct advice as the last thing i need is finding a house at the value they said they would lend and when it comes to the full application the offer less because of the loan.

Thanks for your reply