Kent Reliance Mortgage offer conditions

Laurab2650

Hi, we've had a mortgage offer from Kent Reliance but one of the conditions is that we pay off all our debts within 30 days of completion. Now I don't know where they think we're getting all this money from so why have they offered us a mortgage without any means of paying the debts off? We have some equity in the sale if our house which we plan on using to pay some debt off but not enough to pay it all off! Anyone experienced this or have any advice? 

welly_59

How would they know that you have paid the debts off within 30 days of completion? Isn't it too late after the funds have been transferred and the sale completed?

How much are they requesting is paid off your debts?

JMA74

Sounds like whoever submitted your application has indicated that you are going to be repaying some or all debts and that's fed through to the offer.  

Does is state each debt individually with the balance or just a general statement? 

Laurab2650

JMA74 said:

Sounds like whoever submitted your application has indicated that you are going to be repaying some or all debts and that's fed through to the offer.  

Does is state each debt individually with the balance or just a general statement? 

We will be paying some of them off which we told our mortgage broker. It just says the names of the debts but doesn't go into detail 

Laurab2650

welly_59 said:

How would they know that you have paid the debts off within 30 days of completion? Isn't it too late after the funds have been transferred and the sale completed?

How much are they requesting is paid off your debts?

It says that they'll need statements showing the debts have been paid off. I was thinking could they take legal action if we didn't stick to the conditions of paying the debts off. I don't know how it would work

user1977

You'll need to clarify with them which debts you're not paying off, which may then affect their assessment of affordability. 

ACG

Speak to the broker.
They should be able to rectify it, it could also be badly worded.

I did a case last month where the clients said they were clearing some of their debt (but not all). The offer said "your loans and credit cards will be cleared as part of a condition of the mortgage offer" (or words to that effect). When we checked it, it just mean where applicable. I asked them to send me confirmation of the debts they expect clearing just to avoid any last minute issues and all was fine.