Leeds Building Society - Mortgage Special Conditions PRIOR to completion query

creegish

Hi,

I've gone through a broker to purchase a new build using a mortgage from Leeds Building Society.

My deposit is coming from the equity from selling my current house to a first time buyer and everything is ready to go from their side.

I've had quite a lot of grief getting to the final mortgage offer stage with the Leeds (there was numerous queries about my credit file which were the Leeds errors not mine. They are not a good customer service operation but thats another story) but after 6 weeks of to-ing and fro-ing I have received the paperwork this morning.

However they have included the following special condition on the mortgage:

'Subject to the Society being in receipt of satisfactory proof of repayment of the agreed outstanding debts, prior to completion'

When I was applying with the broker, the broker advised that due to having around £1200 on a credit card and £600 on an interest fee sofa I was being rejected on the affordability checks and could I repay these. At the time I couldn't and told the broker this. The broker then said could I pay them off after completion from any leftover equity - to which the answer is yes. My understanding was that this was the agreement with the Leeds and that the £1800 would be repaid immediately after completion when I received the remaining equity back from the conveyancer.

The way the paperwork has been phrased though this doesn't seem to be the case and based on my experience so far with the Leeds I'm very worried that there going to remove the offer if I advise them that the £1800 can only be paid on or after completion.

I'll be straight on the phone to the conveyancer and the broker on Monday morning but in the meantime could anyway advise on this, I'm getting a little stressed about what might happen.

Will the Leeds invoke this condition?

How do they check?

How do I know it's these 2 debts that they mean - they're no listed on the offer and the broker dealt with the full application so I've not got a copy.

Thanks!

amnblog

You broker has not explained the position very well.


The Lender relies on the solicitor to ensure that such conditions can be complied with.


If the equity from the concurrent sale is sufficient to cover these debts there should not be an issue.


Speak to both your broker and your solicitor to ensure the situation is not more complicated than that.

creegish

Thanks Amnblog, that's what I'm hoping but past experience of the Leeds has taught me they are sticklers for correct language and process. That's reassuring though. I'll try to ca down and chase it up on Monday! cheers.

amnblog

Past experience?


This is not your first mortgage application with them?

creegish

No, I meant past experience on how they've dealt with this application!

We lost 2 weeks as they kept claiming there was an outstanding debt on my credit file that I hadn't disclosed, which there wasn't. We had to escalate to the business manager to get them to admit they were wrong, then we lost another week as they didn't like my payslips as they didn't have the company name on them! From speaking to my estate agent, broker and reading on these forums it seems Leeds have their way of doing things and you have to abide by them to the letter so I'm very wary of the wording on the offer stating that they want proof that the debt is paid before completion. I'm hoping my broker and conveyancer will agree with what you've said above and that we can progress on the basis that they are repaid on completion.

cheers.

amnblog

Leeds are tricky, but brokers experienced with them can manage them.