Paying loan off before mortgage completion

sturgeon

I have a query. I'm buying a new home (new build) and will be selling my property. Say I have a £15k loan outstanding, yet the profit/equity on my sale will many times multiply that £15k so I can pay it off instantly.

My broker has said that the mortgage lender will be told upfront that this loan is there but will be paid off on completion. Lots of people settle debt when selling their homes and this is quite normal, apparently they will be fine with this and if I don't pay it off its tantamount to mortgage fraud.

I trust the broker but double checking as I know how much a loan on file can affect affordability and I need it to be excluded.

amnblog

The broker is right.

Let_Us_See

sturgeon wrote: »

I trust the broker but double checking ..................

Obviously, not too much trust?

sam2015_2

what usually happen is that the lender put a condition on the mortgage offer that the loan should be paid off within........ (x days of completion or something similar). It is usually up to your solicitor to make sure that it happens. Some solicitors asked for proof of the loan being paid off at later date.


I re-mortgage two years ago with my bank and they put the credit cards to be paid off within 30days of completion.