Debts to be paid on completion....

sammiboo

Yesterday our mortgage offer had come through.

We look through the paperwork and everything seemed to be in order......

During the course of our application we told the mortgage company a couple of debts will be paid on completion and specified which ones. (my loan and OH credit card)

The at the very bottom of the last page reads along the lines

"the following debts must be paid within 30 days of completion"

They have added other debts that we didnt agree that would be paid off, although the debts are now lower from when they did the credit check and the payments we have made since.

Loan - £6,160ish (now about £5,500) Agreed to be paid off
Credit card - £3500 ( about the same i think) Agreed to be paid off
Credit card £100 - wasnt agreed but paid off anyway
Credit card £1,300 - We didnt agree to this and we are unsure if its my virgin card or my partners marks and spencers CC.

So we have an extra £1400 to pay off that wasnt agreed. If its my virgin card then there is about £850 balance now.

We fully intend to pay these off but we havent budgeted for this extra and is a little unfair.

What would they do if this wasnt paid in the 30 days? Would they reposess the house for the sake of this money when we have the means to pay it off ?!

I wouldnt risk it but i think its a bit cheeky to add this extra money on there.

We dont have a lot of debt between us, its paid more than the minimum payment. once the mortgage goes through i will have less than 4 k debt

Leon_W

I would be very surprised indeed if the lender were to check if the debts had been repaid within the 30 days.

I can't think of any case of mine where a lender has gone back to check.

Usually if lenders are that worried about existing debt they will get the solicitor to confirm that it is/will be repaid which doesn't seem to be required in your case.

Moggett

I agree with Leon.
The only cases I've had where the lender asks the solicitor to ensure that loans are repaid are sub prime and from the sounds of it your mortgage is with a prime lender (woolwich?) in which case they probably won't check.

Crown

I would get your solictor to write to them and rell them your intentions. The contract should be mutually agreeable to both parties. If you do sign and you dont pay within the 30 days then you could be in breach of the contract. I have no ideas what they would do if this was the case.

sammiboo

Thanks for your replies

OUr lender is the woolwich. First port of call is my OH is going to call them and find out what this £1300 is that they said has to be paid off on completion as i mentioned above it could be either of our cards, they dont give any detials just loan - £**** or credit card £**** so its very vague and is out of date. The sums must be from when they did the credit check ages ago.

I could understand all this if we were both high risk and had mountains of debt but our debt isnt beyond our means by any stretch. I pay off a lot more than i need to.

Rick62

Relax, they are not going to check and if you are talking about only £1300 they will not be too worried. So long as you fully declared all your debts when you applied they have no cause for complaint.

sammiboo

Rick62 wrote: »

So long as you fully declared all your debts when you applied they have no cause for complaint.

The main reason why our mortgage took a while to go through was because my OH forgot to tell them about my virgin card. But we gave them all the info they needed regards this. It was a geniune mistake and not a big balance. The advisor said it wasnt a an issue just that they need a bit more info (on me)

space_rider

I was told that I needed to pay off a debt when i had a mortgage 8 years ago, I didnt and they didnt check.