Mortgage Condition - Must pay off Credit Cards - Is this serious?

amnblog

In reality it all depends on how your solicitor manages it.

If you have a cagey solicitor, you have a messy issue late in the day. Better to manage it now.

davidmcn

It's not something that the solicitor is instructed to deal with (in my experience), so I doubt they'd want to get any more involved than pointing out to you that the condition exists.

glentoran99

What can the bank do if its not paid off 30 days after completion? And surely they cant dictate what the OP does after completion?

amnblog

We have seen solicitors insisting on proof that similar conditions are met before they will complete.

evo21

Well I guess if you don't abide by a term, then they can pull the mortgage maybe? Seems a bit extreme, but that's why I was curious and wondered if anyone knows. It's a bit harsh to kick you out 30 days after moving in! But so so.

ABBF08291

I assume when you/broker filled in the mortgage application they input your credit card & store debt as £3k (or the portion of debt you are required to pay off to meet affordability is £3k). Hence the amount they are lending you is "conditional" on this, since this is what the lender/underwriter took into account in their assessment of your application.

Credit reference agencies often take a couple of months to update and refresh with the latest information. Therefore if this is a condition it would normally make more sense for a lender to check this just before completion (i.e. by you providing statement evidence demonstrating repayment of the £3k) or for them to carry our a second credit check to confirm.

Since it would seem you are completing (i.e being lent the money) without them checking I would say it was simply a contractual obligation, along with the many other contractual obligations in the T&Cs. Theoretically speaking you are legally required to abide and you would be breaking contarct by not repaying.But practically speaking, there will be a divide of opinion of whether you should or should not have to repay it.....

davidmcn

evo21 wrote: »

Well I guess if you don't abide by a term, then they can pull the mortgage maybe? Seems a bit extreme, but that's why I was curious and wondered if anyone knows. It's a bit harsh to kick you out 30 days after moving in!

No, they can't. There are many hoops which lenders have to jump through before repossessing (which in practice is expensive and risky for them anyway)

amnblog

Interesting that a number of posters consider a contractural obligation as something that can be considered optional on the basis that 'you will probably get away with it.'

evo21

davidmcn wrote: »

No, they can't. There are many hoops which lenders have to jump through before repossessing (which in practice is expensive and risky for them anyway)

Maybe it's more that they can revise the terms, like increase the interest you pay or something?

evo21

amnblog wrote: »

Interesting that a number of posters consider a contractural obligation as something that can be considered optional on the basis that 'you will probably get away with it.'

But is it even a real term if this account doesn't exist anyway?! There's so many holes in it. No names, no accounts, no way of checking within the 30 days...

We have every intention of paying anything we owe ASAP (hopefully the next week or so) - god knows I don't want any debts other than my mortgage! But it just seems like it's a moot point - hence my questions.