Halifax mortgage offer special condition

Daaniel

Got a mortgage offer from Halifax and it has the following special condition. I’m not sure what this means (full condition below) - have 2x credit cards and paying off 2x loans as well. Do I need to pay it all off?! Plus my partner has some outstanding credit, too. Neither of us have made any such declaration though.

We went through a broker so checking with them what they think but I wanted to check if anyone else has had something like this?

“You have declared an intention to pay some or all of your outstanding credit commitments. The mortgage advance has been assessed on this basis and it is your responsibility to ensure that these commitments are repaid. Completion takes place on the condition that such repayment takes place”

It’s pretty vague and not sure what it means: any help appreciated.

nik_k

Your broker will have declared the amount of current commitments which you'll be repaying prior to completion. This is what you're obligated to repay under the special condition. Therefore, your broker is the only one who can answer this question. Ask them what they stated in the application.

foxy-stoat

You will need to settle all of your debt on completion - doesnt make sense to pay some off, unless your mortgage application is based on having some personal debt.

What did your broker say to Halifax?

Daaniel

Thanks - yes I think it all lies with the MB. Will see what I get back tomorrow!

ACG

Have you recently cleared any loans/credit cards?
If so, it is probably just in relation to those. Because credit reports do not always update instantaneously, it is usually better to put them on there and tick that they will be cleared rather than leave them off and wait for an underwriter to question it.

SouthLondonUser

Daaniel wrote: »

It’s pretty vague and not sure what it means: any help appreciated.

It is actually very clear and straightforward. What would be unclear and why?

Daaniel wrote: »

“You have declared an intention to pay some or all of your outstanding credit commitments. The mortgage advance has been assessed on this basis and it is your responsibility to ensure that these commitments are repaid. Completion takes place on the condition that such repayment takes place”

The bit in bold means that completion is conditional to your repaying of those debts.
If you're still unclear, it means that, if you don't repay those debts before completion, the bank will not lend you the money.

To be even clearer, by exchanging you commit to completing; if you don't, you lose your deposit and the seller may sue you.

So, to spell it out even more clearly, if you don't repay those debts before completion, the bank will not lend you the money and, if in the meanwhile you have already exchanged, you will lose your deposit and the seller may sue you.

So do NOT exchange unless you can repay those debts, or unless you get a revised offer in which the bank explicitly states they will lend you the money even if you don't repay those debts.

kingstreet

The Halifax system is vague and a PITA.

Instead of listing the items and the amounts, it simply refers to generic commitments to be repaid where you may have agreed to reduce some, repay some and retain others.

The broker should have produced a copy of their factfind which will show what is staying and what is going.

I'm surprised that some brokers are still not issuing copies of factfind, illustration, application and suitability letter after submission to ensure applicant understanding. We insist on doing so and having a reply from the applicant confirming all meets with their approval.

[Deleted User]

My last brokerage used to require signed fact find on file but current network doesn't. Suitability letter is sent but no need for proof it's been sent. Last one had to upload the sent email and a confirmation from client they received it.

Strange their is such variation for such a risky part of the process

kingstreet

We issue all the sales documents by email and ask them to confirm receipt and understanding by return email.

Our system saves everything so we have a record of acceptance. We started this for our previous network MSN who adopted it across the board and it's continued under HLP.

ACG

kingstreet wrote: »

We issue all the sales documents by email and ask them to confirm receipt and understanding by return email.

Our system saves everything so we have a record of acceptance. We started this for our previous network MSN who adopted it across the board and it's continued under HLP.

So it was your fault I used to get in trouble with Jo? Not mine for not doing it obviously

kingstreet

ACG wrote: »

So it was your fault I used to get in trouble with Jo? Not mine for not doing it obviously

Guilty. Trying to tell me you wanted to get pieces of paper signed? :eek: