Conditions on mortgage offer...credit report not updated

Gem_M90

Hi, 
I've posted on here before for advice but as my completion was delayed into March I've started stressing. Due to complete on March 19th now. 
My Halifax offer states I have balances which I must clear before/on completion. My credit report hasn't updated/won't be updated before completion and I still have balances showing on there, which Halifax will see if they do another check (I got my offer back in September so it's likely they'll check as it's been 6 months). 
The balances are only small in comparison to what I had on there at the time of application and no new credit.  I've asked my solicitor if I should take screenshots of balances etc as evidence and he has said he's never been asked to evidence this before. 
My next statements for the store card balances aren't due until after completion, and my last statement still shows a balance.. 
Anyone had this experience? If Halifax run a check will they allow me to evidence this or will they straight up reject? 

davidmcn

We've been through this before...you don't need to settle them before completion. You can legitimately settle them on the day of completion, which is after the Halifax have released the loan funds. Like your solicitor says, this isn't something the solicitors are instructed to deal with.

Gem_M90

davidmcn said:

We've been through this before...you don't need to settle them before completion. You can legitimately settle them on the day of completion, which is after the Halifax have released the loan funds. Like your solicitor says, this isn't something the solicitors are instructed to deal with.

I appreciate we've been through this before, however I've read on several threads about how lenders are doing more final checks when there's been a long time period between offer and completion to check for changes in circumstance so I'm just trying to prepare myself for what to expect in this instance. If they're going to check my credit report, and ignore the fact that there's still balances on there that they asked me to pay... wasn't it a totally pointless condition? 

K_S

@gem_m90 This condition isn't always fully enforced. The lender expects that the borrower will do something that is a condition of the mortgage offer.

In some cases (eg: Halifax at 90% LTV), the affordability assessment will be done assuming the debt remains, so they have some surety that even if the debt isn't paid off at completion, it's still affordable.

In other cases where the current debt is very high (with some/lot of it to be repaid at completion), the lender may review manually (during the application stage, pre-offer) and make an assessment as to whether they want to take the risk or not.

With some lenders (usually smaller building societies), where debt is to be repaid at completion, they require that the debts be paid off by the solicitors directly.

I hope that helps explain the ways lenders approach this issue and provide reasonable safeguards for themselves.

Gem_M90

K_S said:

@gem_m90 This condition isn't always fully enforced. The lender expects that the borrower will do something that is a condition of the mortgage offer.

In some cases (eg: Halifax at 90% LTV), the affordability assessment will be done assuming the debt remains, so they have some surety that even if the debt isn't paid off at completion, it's still affordable.

In other cases where the current debt is very high (with some/lot of it to be repaid at completion), the lender may review manually (during the application stage, pre-offer) and make an assessment as to whether they want to take the risk or not.

With some lenders (usually smaller building societies), where debt is to be repaid at completion, they require that the debts be paid off by the solicitors directly.

I hope that helps explain the ways lenders approach this issue and provide reasonable safeguards for themselves.

@k_S yes that makes sense, thank you for this. I have 70% LTV with Halifax but I'm at the top end of my borrowing amount as a single applicant. The amounts still showing on my file are 25% of what they were on application/offer so I'll try not to get myself so flustered as logically it doesn't make sense for them to pull an offer or even ask for evidence...I guess there's no gurantee I wouldn't run the balances back up immediately after completion so that's the risk they've taken. 

davidmcn

Gem_M90 said:

davidmcn said:

We've been through this before...you don't need to settle them before completion. You can legitimately settle them on the day of completion, which is after the Halifax have released the loan funds. Like your solicitor says, this isn't something the solicitors are instructed to deal with.

I appreciate we've been through this before, however I've read on several threads about how lenders are doing more final checks when there's been a long time period between offer and completion to check for changes in circumstance so I'm just trying to prepare myself for what to expect in this instance. If they're going to check my credit report, and ignore the fact that there's still balances on there that they asked me to pay... wasn't it a totally pointless condition? 

Most of your mortgage conditions aren't things which are meant to be done (or are checked up on) before completion. If they had meant "you must clear these balances far enough in advance of completion that we'll be able to confirm that from your credit file", they wouldn't have said "before or on completion", would they?

pjw1592

davidmcn said:

Gem_M90 said:

davidmcn said:

We've been through this before...you don't need to settle them before completion. You can legitimately settle them on the day of completion, which is after the Halifax have released the loan funds. Like your solicitor says, this isn't something the solicitors are instructed to deal with.

I appreciate we've been through this before, however I've read on several threads about how lenders are doing more final checks when there's been a long time period between offer and completion to check for changes in circumstance so I'm just trying to prepare myself for what to expect in this instance. If they're going to check my credit report, and ignore the fact that there's still balances on there that they asked me to pay... wasn't it a totally pointless condition? 

Most of your mortgage conditions aren't things which are meant to be done (or are checked up on) before completion. If they had meant "you must clear these balances far enough in advance of completion that we'll be able to confirm that from your credit file", they wouldn't have said "before or on completion", would they?

I don’t understand the poor tone to your responses, when the person who started this thread only wanted certainty regarding his/her own circumstances. 

It’s quite unnecessary really. Being kind coats nothing.

Gem_M90

pjw1592 said:

davidmcn said:

Gem_M90 said:

davidmcn said:

We've been through this before...you don't need to settle them before completion. You can legitimately settle them on the day of completion, which is after the Halifax have released the loan funds. Like your solicitor says, this isn't something the solicitors are instructed to deal with.

I appreciate we've been through this before, however I've read on several threads about how lenders are doing more final checks when there's been a long time period between offer and completion to check for changes in circumstance so I'm just trying to prepare myself for what to expect in this instance. If they're going to check my credit report, and ignore the fact that there's still balances on there that they asked me to pay... wasn't it a totally pointless condition? 

Most of your mortgage conditions aren't things which are meant to be done (or are checked up on) before completion. If they had meant "you must clear these balances far enough in advance of completion that we'll be able to confirm that from your credit file", they wouldn't have said "before or on completion", would they?

I don’t understand the poor tone to your responses, when the person who started this thread only wanted certainty regarding his/her own circumstances. 

It’s quite unnecessary really. Being kind coats nothing.

@davidmcn yes, I understand your point as I did the last time you gave advice as well, I more just wanted to prepare for all eventualities and have an insight as to the lenders process/what I can expect. 
@pjw1592 I did ask questions regarding this condition before which @davidmcn advised on so I can understand the frustration that I'm seemingly going over old ground. I was just looking for a clear view of what I can expect though and if there's anything I should prepare for, I've found the whole 6 month process very stressful during these times so I just want to be sure not to fall at the last hurdle so to speak. 

lonibra

OP, there's absolutely nothing wrong with asking questions. That's the whole point of this public forum. Answers can change over time and no two situations are exactly the same.  

No one is forcing any poster to respond to queries. If they feel it's been asked before, they can either link to the previous thread or just ignore it and move on. There will undoubtedly be other more helpful souls willing to respond.

K_S

Gem_M90 said:

K_S said:

@gem_m90 This condition isn't always fully enforced. The lender expects that the borrower will do something that is a condition of the mortgage offer.

In some cases (eg: Halifax at 90% LTV), the affordability assessment will be done assuming the debt remains, so they have some surety that even if the debt isn't paid off at completion, it's still affordable.

In other cases where the current debt is very high (with some/lot of it to be repaid at completion), the lender may review manually (during the application stage, pre-offer) and make an assessment as to whether they want to take the risk or not.

With some lenders (usually smaller building societies), where debt is to be repaid at completion, they require that the debts be paid off by the solicitors directly.

I hope that helps explain the ways lenders approach this issue and provide reasonable safeguards for themselves.

@k_S yes that makes sense, thank you for this. I have 70% LTV with Halifax but I'm at the top end of my borrowing amount as a single applicant. The amounts still showing on my file are 25% of what they were on application/offer so I'll try not to get myself so flustered as logically it doesn't make sense for them to pull an offer or even ask for evidence...I guess there's no gurantee I wouldn't run the balances back up immediately after completion so that's the risk they've taken. 

@gem_m90 Absolutely. Nothing to worry about imho. Halifax's comfort lies in the low LTV. Good luck!

Gem_M90

K_S said:

Gem_M90 said:

K_S said:

@gem_m90 This condition isn't always fully enforced. The lender expects that the borrower will do something that is a condition of the mortgage offer.

In some cases (eg: Halifax at 90% LTV), the affordability assessment will be done assuming the debt remains, so they have some surety that even if the debt isn't paid off at completion, it's still affordable.

In other cases where the current debt is very high (with some/lot of it to be repaid at completion), the lender may review manually (during the application stage, pre-offer) and make an assessment as to whether they want to take the risk or not.

With some lenders (usually smaller building societies), where debt is to be repaid at completion, they require that the debts be paid off by the solicitors directly.

I hope that helps explain the ways lenders approach this issue and provide reasonable safeguards for themselves.

@k_S yes that makes sense, thank you for this. I have 70% LTV with Halifax but I'm at the top end of my borrowing amount as a single applicant. The amounts still showing on my file are 25% of what they were on application/offer so I'll try not to get myself so flustered as logically it doesn't make sense for them to pull an offer or even ask for evidence...I guess there's no gurantee I wouldn't run the balances back up immediately after completion so that's the risk they've taken. 

@gem_m90 Absolutely. Nothing to worry about imho. Halifax's comfort lies in the low LTV. Good luck!

Thank you for your insight @K_S,  I had to use the builder's recommended broker after my own broker couldn't deal with the HTB application and they're very faceless, when you call it's just a call centre you get through to so I've felt pretty much on my own with this. That's put my mind at ease having an informed opinion.