Am I ready for completion?

Gem_M90

Hi everyone, 
I've asked several questions and used this board for loads of mortgage advice since starting the process in August, and now I find myself only a month away from completion (wish waiting on the offer had gone that fast!) As a FTB I just wanted some final advice on whether I'm good to go or if theres still some things I need to watch out for. 
On application to Halifax, I had 10k in various credit showing on my credit file, half of this I paid off prior to the application but my broker declared it as it was showing on my file. He lumped everything together and selected that it would be paid prior to completion. 
My mortgage offer from Halifax came through with the condition that the debts are paid before or on completion (already had advice on this from a previous post on here). 
Of the remaining 5k, I'm down to just under 3k left (so 7k cleared since application and no further credit added). 
The intention was to clear the remaining, however my partner had to move to a lower paying job due to covid (the mortgage is in my name only), and we had to prioritise rent/bills so I havent managed to put as much to them, but have still paid well over the minimum payments. 
I have the full deposit funds in my bank account, and the solicitors fee. My solicitor has completed all necessary paperwork at his end and is just waiting on our official completion date now. 
Does this sound as though I'm good to go and everything will go through fine? 
Last minute jitters!

csgohan4

if the mortgage offer says to clear the debt on completion, then it seem it is clear, the solicitor may ask for evidence for the lender. Clearing most will help, but it may be up to how diligent the solicitor will be in requesting documents or lender compliance checks. 

They can and will do credit checks before completion

Can you borrow the 3k from a relative/friend?

Gem_M90

csgohan4 said:

if the mortgage offer says to clear the debt on completion, then it seem it is clear, the solicitor may ask for evidence for the lender. Clearing most will help, but it may be up to how diligent the solicitor will be in requesting documents or lender compliance checks. 

They can and will do credit checks before completion

Can you borrow the 3k from a relative/friend?

I asked my solicitor about this with regards to evidence. As the condition says "on or before completion" i could essentially be paying the remainder on the day of completion, in which case it will obviously still show on my credit file. My solicitor told me he has never been asked to evidence anything to Halifax.
As the condition essentially allowed me to wait until the very end to pay it, my thoughts were I would wait and see if they ask for it to be cleared or if they'll be satisfied that most is cleared and the rest still being paid down (0% interest on what's left) , and if they do ask for it to be paid I'll then borrow from relatives and pay it then. Not sure if that's acceptable?

csgohan4

it really depends on how relaxed the lender or how bothered they are checking  your credit file or wanting statements. Barclays, asked me to clear a balance on my card, even though I clear balances every month in full. Never got asked just before completion or evidence. Although I never checked if they credit checked me. 

I wouldn't worry too much if you have a backup of paying it off immediately, but the risk it is not no risk

blueplanet2020

From recent experience of both Barclays is a lot stricter than Halifax.

Gem_M90

csgohan4 said:

it really depends on how relaxed the lender or how bothered they are checking  your credit file or wanting statements. Barclays, asked me to clear a balance on my card, even though I clear balances every month in full. Never got asked just before completion or evidence. Although I never checked if they credit checked me. 

I wouldn't worry too much if you have a backup of paying it off immediately, but the risk it is not no risk

When I've reduced it down as much as I have I dont think I'll have a problem getting the rest if I need it/they ask for evidence. I just didn't think it made much sense to borrow off someone to pay it and then i'll have the pressure of needing to pay that person back quicker. 
I also have almost 20k in available credit across various sources which I could run up after completion for all they know (I wont!) so I guess it mostly comes down to trust as that seems like a much bigger risk to me than what I have left to pay. 

csgohan4

Gem_M90 said:

csgohan4 said:

it really depends on how relaxed the lender or how bothered they are checking  your credit file or wanting statements. Barclays, asked me to clear a balance on my card, even though I clear balances every month in full. Never got asked just before completion or evidence. Although I never checked if they credit checked me. 

I wouldn't worry too much if you have a backup of paying it off immediately, but the risk it is not no risk

When I've reduced it down as much as I have I dont think I'll have a problem getting the rest if I need it/they ask for evidence. I just didn't think it made much sense to borrow off someone to pay it and then i'll have the pressure of needing to pay that person back quicker. 
I also have almost 20k in available credit across various sources which I could run up after completion for all they know (I wont!) so I guess it mostly comes down to trust as that seems like a much bigger risk to me than what I have left to pay. 

lenders don't micromanage manage, they only deal in absolutes. Your offer was clear and you needed to clear the balance, if you choose not to, your risk to bear and worse case scenario they withdraw the offer and you pay the vendor's costs and lose your deposit over a few grand. 

Best to have destiny in your hands, than hope for the best and lose sleep

they don't care about your stoozing or saving money, not their problem or gain either. 

Gem_M90

csgohan4 said:

Gem_M90 said:

csgohan4 said:

it really depends on how relaxed the lender or how bothered they are checking  your credit file or wanting statements. Barclays, asked me to clear a balance on my card, even though I clear balances every month in full. Never got asked just before completion or evidence. Although I never checked if they credit checked me. 

I wouldn't worry too much if you have a backup of paying it off immediately, but the risk it is not no risk

When I've reduced it down as much as I have I dont think I'll have a problem getting the rest if I need it/they ask for evidence. I just didn't think it made much sense to borrow off someone to pay it and then i'll have the pressure of needing to pay that person back quicker. 
I also have almost 20k in available credit across various sources which I could run up after completion for all they know (I wont!) so I guess it mostly comes down to trust as that seems like a much bigger risk to me than what I have left to pay. 

lenders don't micromanage manage, they only deal in absolutes. Your offer was clear and you needed to clear the balance, if you choose not to, your risk to bear and worse case scenario they withdraw the offer and you pay the vendor's costs and lose your deposit over a few grand. 

Best to have destiny in your hands, than hope for the best and lose sleep

they don't care about your stoozing or saving money, not their problem or gain either. 

Thanks. So I'd say everything sounds good but I need to be mindful that depending on how strict they're going to be I may still have the last bit to clear. Even if I were to clear the last bit now it will still be on my credit file by completion anyway (my experian seems to be taking about 8 weeks to update just now) so I think I'm as well waiting and then pay it off at completion if I'm required to.
Thanks for the insight!

JJG1984

On my application with NatWest the underwriter asked for proof that i had cleared the depts as stated in the application; i said i would clear 10k but only managed 7 and my mortgage was approved with 3k outstanding 

Gem_M90

JJG1984 said:

On my application with NatWest the underwriter asked for proof that i had cleared the depts as stated in the application; i said i would clear 10k but only managed 7 and my mortgage was approved with 3k outstanding 

Yeah I asked on here before questions about the condition on my offer and a few of the brokers told me once the offer had came through they'd essentially made their decision and as long as I improved things rather than added to it and made it worse then they'd be satisfied with that, so I haven't been too worried. I just wanted to check that there's nothing I'd missed as I've never done this before. Not sure if it's literally just a case of waiting for the solicitor to draw the funds down, then pay the solicitor and thats it done?

Thrugelmir

If there's a condition attached to the offer made. Then the lender is within their rights to impose it. If it is. Will be a result of broader economic conditions. Not related to your specific application. The only certainty at the moment is uncertainty.