Supplementary Conditons - Paying off Credit

charlamine

Hi


Have a mortgage offer that stipulates credit commitments need to be paid off within 30 days of completion


That is fine as we knew this would be the case and have the majority of the money to clear from equity


However an amount will be paid off from salary inbetween exchange and completion (new build property so long gap inbetween)


I obviously want to make sure I keep to the condition and my paperwork is all in order should it be asked for - does the "within" mean - 30 days before completion or 30 days after completion?

lee111s

You'll need to speak to the lender who has specified the stipulation. I suspect it'll be within 30 days after completion.

kingstreet

As there's virtually no chance of you knowing your completion date thirty days before it happens, it's fairly safe to assume it means upto thirty days after completion.

mrsbigz

Hello sorry to hijack this thread, but I'm just curious (as think I'm going to be in a similar position) - who actually checks that you've kept the condition? Is it the lender? The solicitor? Do they actually carry out these checks? And is it always 30 days.... My IFA insinuated it might be 3 months. Of died it differ between lenders? Thank you in advance!!

libf

The solicitor can check. I've not had to supply proof either for my first purchase or the subsequent remortgage, but my balances were small (less than £500).

mrsbigz

Hello thanks for your reply! So was yours a condition of your mortgage and subsequent remortgage? And did you pay them? Ta!

libf

Yep, it was a condition each time.

I always clear my 'normal' card bills on pay day so they don't attract any interest, so the amount owed was probably different at completion to that on the offer anyway, but I did pay them down to zero at completion just in case.

I did just get done paying off my 0% card before my current mortgage application; partly because I knew it would be a condition but mostly because the 0% ran out in July.

charlamine

So far my solicitor has asked me for written confirmation that I acknowledge the condition and will attend to it.

Basically I take that as proof for them and the lender that I understand the condition and if I don't do it and subsequently struggle with the mortgage payments because of this then I won't have any legal recourse to say I was sold a mortgage I couldn't afford and protects Lender if they need to reposses

As a subsequent I don't think that will ask for proof that it has been done but want to make sure I can show it if required

My oh also said I was an idiot a if you think about it, it must be 30 days after completion as if you were selling in a chain and were using equity to clear debts you wouldn't be able to do so until completion which makes sense now!!

chopper78

My solicitor advised me the bank wouldn't check whether the loan was paid off upon completion, but if in the future I ran into problems, the bank would then check whether the mortgage conditions were complied with (i.e. loan paid off) and if not, then it would become a problem.

mrsbigz

My solicitor advised me the bank wouldn't check whether the loan was paid off upon completion, but if in the future I ran into problems, the bank would then check whether the mortgage conditions were complied with (i.e. loan paid off) and if not, then it would become a problem.

so theoretically they don't necessarily check that you have complied at the time you're supposed to comply - but could be an issue if you later run into problems (I assume problems paying the mortgage?) thanks, sorry i'm being a little slow here......