Barclays mortgage - no further borrowing condition

Roland_Sausage

We are coming to the end of a 5 year fixed term and are looking to change deal as well as put a lump sum into our mortgage. House is valued at £190,000, mortgage is currently £118,000 and we are looking to pay off £55,000 leaving £63,000 needing financed. 

Mortgage broker has recommended a 5 year fixed deal with Barclays and keeping the payments similar to what we are currently paying, we should have it paid off in 9 years. All good.

Today we have received communication from a conveyancer acting on behalf of Barclays asking me to sign an agreement that all my credit card balances, and a small balance on Very.co.uk "will be fully repaid within 30 days of completion of the remortgage to Barclays Bank UK PLC without taking on further borrowing"

The bit that concerns me is "without taking on further borrowing". Are Barclays basically asking me to stop using credit cards? Do they expect me to do this for the duration of the mortgage, or is this just a standard condition that they send to all applicants? What if I want to finance a new car in a couple of years? Are they disallowing this too?

I do make extensive use of credit cards (Amex wherever possible, a Nationwide Visa as a backup, and Halifax Clarity for non-Sterling transactions)  putting all our day to day spending on them, and paying them off IN FULL every month. The Very account is currently interest free and I was planning to pay that IN FULL as soon as the interest free period ends (the balance is a piddly £341).

Thanks for anyone that can clarify this.

[Deleted User]

No.

They mean that they want you to clear the balances without want more borrowing to do do.

C_N_

To me it looks like they're saying you would need to pay off all existing debts, without using a new line of credit to do so. 

Roland_Sausage

Thanks folks. I hadn't considered that option, but I think you are both probably correct. In which case, it shouldn't be a problem.

getmore4less

What 5 year deal is being put forward?

For £63k over 9 years full term

On a remortgage 1.63% no fee great escape cashback is probably going to be the best option.

Are you an existing Barclays mortgage customer?
the 1.49% no fee will be hard to better

Often the best option with Barclays is track and fix to their 5y or 7y fix rates
Your mortgage size(low) and payment/term(short) mean the no fee 5 year still win by a few £100.

  

Roland_Sausage

getmore4less said:

What 5 year deal is being put forward?

For £63k over 9 years full term

On a remortgage 1.63% no fee great escape cashback is probably going to be the best option.

Are you an existing Barclays mortgage customer?
the 1.49% no fee will be hard to better

Often the best option with Barclays is track and fix to their 5y or 7y fix rates
Your mortgage size(low) and payment/term(short) mean the no fee 5 year still win by a few £100.

Hi,

The deal is 5 Year Fixed No Fee Remortgage Great Escape £250 Cashback

5 year fixed rate of 1.49% followed by a variable rate which is 3.49% above the Bank of England base rate.

I am not an existing Barclays mortgage customer.

getmore4less

that's good if you got 1.49% no fee, that the same as the current customer rate
the new customer great escape is 1.63% on the data sheet.