Debts Vs Mortgage Application

cat1984

I know I have to wait until Monday to know exactly what the situation is, but Friday Natwest requested evidence of repayments on my loan/credit cards.

I currently have a loan with Barclays which has £1200 remaining and a credit card with Virgin £3838.

During discussions with my mortgage broker I advised I was paying these off and they should be cleared by September time. I advised that at as push it was likely to could get them cleared sooner.

I contacted my MB's colleague (my MB is currently away on holiday) and asked exactly what it was Natwest were wanting.

She advised my MB has mentioned at the time of application that I would have cleared some of my credit/loans and Natwest wanted to see evidence of the £0.

This made me query how much my MB has stated on the application form I actually owe.

I wont know what has been put on there until Monday, but I am aware that once Natwest have this information they are happy to book the valuation.

My question is, what happens if my MB has stated I was debt free and actually there is some outstanding (as above)?

Will this automatically cause a decline on the mortgage or will it go back to looking at whether or not we can afford the mortgage? We have already had the loan limit lowered by £4000 due to my husbands low income over the last 2 years.

Any advice would be greatly appreciated

Contemptuous

The lender will need to review affordability based on your actual level of debt.
Expect the loan amount offered to be decreased again.

cat1984

Thanks. I had a feeling that might be the case.

My parents have offered to lend me the money and I have enough to cover the over, so technically I can show what they need but it just means eating into money we had aside for anything we hadn't accounted for (i.e. the lowered loan amount).

I will wait for Monday and go from there...

Thanks for your reply.