Mortgage offer conditions

CHammer07

Hi there,

I have a mortgage offer from the halifax and have already exchanged contracts in July. It is a new build and due to complete in october. We have bought with help to buy.

On the `special conditions` it says you have declared an intention to repay some or all of your credit commitments before completion(it totals just over 4k, loan and overdraft) that at the time of application i said i would. I am due some inheritence money which I was going to use to pay off this debt but due to issues raised on the estate with DWP I may not have this money before we complete. My mortgage advisor seems to think I will be ok and that Halifax will not re-check but I am worried that they will and pull the offer. Should I just leave it and hope for the best or try and see if family members can help out with the 4k to pay off?
Appreciate any help you can give!
Thank you

CHammer07

any help or advise anyone?

lee111s

The solicitor might check and want proof that they've been paid off.

If they haven't been and you can't afford to, the solicitor will need to tell the lender who may refuse to release the funds, leaving you unable to complete.

You're legally obliged to purchase the house now you've exchange so it's quite risky to not abide by the conditions set out.

CHammer07

Thanks for the reply lee111s.

I`m not worried about the solicitor checking as they`re actually a friend of mine but I wouldn`t like to run the risk of the lender spot checking or asking for proof that certain items have been paid off to find out that they haven`t!

I just wondered whether anybody knew whether or not lenders or Halifax in particular check these things pre-completion as I have read on here other people saying that they won`t check, even my f.a said not to worry but how can you not!

Sounds like the best option will be to try and raise the money!

kingstreet

Is the mortgage affordable without repayment of the debt?

If it is, ask your broker to go back in the Halifax system and change it, so you get a revised offer.

I'm assuming not as no sensible broker would tick the "to be repaid on completion" box if they didn't need to.

CHammer07

Hi Kingstreet

Yes the mortgage is more than affordable, at the time of application I was dubious about putting in to be repaid pre-completion in case I didn`t have the money but was told it wouldn`t be a problem.

The worry I have is that if we go back to the lender now and ask to change it surely they could refuse to lend altogether?

We have a very good rate agreed and have obviously already exchanged so may try and get the money together first to pay back instead of ignoring!

Thanks for your help

kingstreet

If it meets affordability without repaying the debt, the system will simply spew out a revised offer after the submit button is pressed.

If not, your broker will have to trial different amounts to be repaid before he hits on the amount which results in the accept decision and the revised offer.

Please speak to whoever is arranging your mortgage and have a heart to heart about how debt works relative to a Halifax application as you seem to be under the misapprehension that a decline is the end of the line. It isn't, it's just a step in aligning income/commitments and affordability.

CHammer07

Thank you Kingstreet.

I think I`ll catch up with my broker and look at my options.