Mortgage Offer Conditions

[Deleted User]

I think you need to stop asking/mentioning/ bringing attention to yourself and just accept what you have been told. They don’t check. The mechanics of being able to check and make sure they are paid off on completion are just not there. Relax and enjoy looking forward to your new house!  

AliceBanned

I am in the same position with Nationwide and have £4000 to repay with a condition on the mortgage offer. It's hard to relax just in case it all falls through because of this but I will be down to £1000 approx by the time of completion. As people on here are saying it seems pointless because it is creating an artificial deadline for revolving credit - it is the attitude of the buyer and intention around debt that is important and I am hoping this is how the lender is viewing it. With so much to pay for in solicitor fees and estate agent fees it couldn't be a worse time to have to repay the debt down to zero though that is my intention.

thaddy

AliceBanned said:

I am in the same position with Nationwide and have £4000 to repay with a condition on the mortgage offer. It's hard to relax just in case it all falls through because of this but I will be down to £1000 approx by the time of completion. As people on here are saying it seems pointless because it is creating an artificial deadline for revolving credit - it is the attitude of the buyer and intention around debt that is important and I am hoping this is how the lender is viewing it. With so much to pay for in solicitor fees and estate agent fees it couldn't be a worse time to have to repay the debt down to zero though that is my intention.

We are first time buyers and our Nationwide offer also has a special condition to have debt cleared but we were asked to show proof that it was cleared before getting the approval 

JJG1984

On my NatWest application i claimed I would clear £9000 worth of credit card debt before completion, on Thursday the underwriter contacted my broker asking for proof; luckily i had been paying down doing the process and was now only £2000 with proof. I have every intention to have this cleared. Hopefully get the officer next week as all documents now shared.

I am boring to the maximum of my affordability; so this is a win for me as i have been expecting a declined application 

JJG1984

Auto correct did me no favours; should have read that back. Good Luck and Good Day 

[Deleted User]

AliceBanned said:

I am in the same position with Nationwide and have £4000 to repay with a condition on the mortgage offer. It's hard to relax just in case it all falls through because of this but I will be down to £1000 approx by the time of completion. As people on here are saying it seems pointless because it is creating an artificial deadline for revolving credit - it is the attitude of the buyer and intention around debt that is important and I am hoping this is how the lender is viewing it. With so much to pay for in solicitor fees and estate agent fees it couldn't be a worse time to have to repay the debt down to zero though that is my intention.

Nationwide is slightly different as their application system asks for 'credit card balance now' and then 'balance on completion' so its a lot easier to state that some of the card will be cleared but not all.  

Gem_M90

JJG1984 said:

On my NatWest application i claimed I would clear £9000 worth of credit card debt before completion, on Thursday the underwriter contacted my broker asking for proof; luckily i had been paying down doing the process and was now only £2000 with proof. I have every intention to have this cleared. Hopefully get the officer next week as all documents now shared.

I am boring to the maximum of my affordability; so this is a win for me as i have been expecting a declined application 

So it seems Natwest ask for the proof before even making their mortgage offer, which Halifax didn't do. That's essentially what my solicitor was pointing out, that if they were going to require proof that certain credit had been repaid before lending the money then they would have required this before even making the offer as someone saying "yeah I'll pay it" is no gurantee for them. 

[Deleted User]

Gem_M90 said:

JJG1984 said:

On my NatWest application i claimed I would clear £9000 worth of credit card debt before completion, on Thursday the underwriter contacted my broker asking for proof; luckily i had been paying down doing the process and was now only £2000 with proof. I have every intention to have this cleared. Hopefully get the officer next week as all documents now shared.

I am boring to the maximum of my affordability; so this is a win for me as i have been expecting a declined application 

So it seems Natwest ask for the proof before even making their mortgage offer, which Halifax didn't do. That's essentially what my solicitor was pointing out, that if they were going to require proof that certain credit had been repaid before lending the money then they would have required this before even making the offer as someone saying "yeah I'll pay it" is no gurantee for them. 

Natwest and Halifax have the same policy on it but sometimes an individual underwriter might want to call shenanigans on someones claim to clear debt. If bank statements show no surplus income and the deposit shows its all being used on the purchase then plausibility will kick in and they might ask for proof of the ability to clear it.   It just depends on how that underwriter feels about the case.  
Once the offer is made then they've made their choice and wont check.   

AliceBanned

Deleted_User said:

Gem_M90 said:

JJG1984 said:

On my NatWest application i claimed I would clear £9000 worth of credit card debt before completion, on Thursday the underwriter contacted my broker asking for proof; luckily i had been paying down doing the process and was now only £2000 with proof. I have every intention to have this cleared. Hopefully get the officer next week as all documents now shared.

I am boring to the maximum of my affordability; so this is a win for me as i have been expecting a declined application 

So it seems Natwest ask for the proof before even making their mortgage offer, which Halifax didn't do. That's essentially what my solicitor was pointing out, that if they were going to require proof that certain credit had been repaid before lending the money then they would have required this before even making the offer as someone saying "yeah I'll pay it" is no gurantee for them. 

Natwest and Halifax have the same policy on it but sometimes an individual underwriter might want to call shenanigans on someones claim to clear debt. If bank statements show no surplus income and the deposit shows its all being used on the purchase then plausibility will kick in and they might ask for proof of the ability to clear it.   It just depends on how that underwriter feels about the case.  
Once the offer is made then they've made their choice and wont check.   

MMm well my broker said they won't check but I am taking his word for it. I may have time to repay it (Nationwide application) but if not it will just delay things another month..it's very unclear at the moment as it seems that sometimes they check sometimes they don't. I have the option to increase my gifted deposit but may wait to see what the timing is and how close I am to clearing it. 

Al_El_Hay

We are planning on repaying our credit card from the equity from the sale of our house, before we take out another mortgage - there's no way we would could prove this has been done until the sale has completed. Has anyone had experience of this?