Special conditions on Nationwide Mortgage

mrsfiona

Hi

Need some advice please am all a fluster! 

We have a special condition in our mortgage offer from nationwide 

" this offer is offered on the understanding that he following commitments will be repaid on or before completion of this loan:"

When taking out the mortgage we did say originally that we would pay off a bulk of our debt but we had to put another £10k for the deposit and the broker was aware of this. 

All but one loan has been paid off, which we said we would never be able to pay off either way! 

Question is how does nationwide check or know that the special conditions have been paid. Is this something I should be worried about??? What should I do as we are in rented accommodation and we have given notice.

Feel like crying! 

silvercar

Your solicitor is obliged to check that you have complied with the mortgage conditions.

user1977

silvercar said:

Your solicitor is obliged to check that you have complied with the mortgage conditions.

No, only if their instructions say they are. 

housebuyer143

The solicitor will ask for proof they are cleared before they draw down the mortgage funds, 

ACG

Im not sure you can really blame the broker if you did not make it clear that the extra £10k required would be coming from the debt you said you would clear. 

You need to speak to the broker as is it does not sound like the offer is valid. It is based on a previous situation which seems like it is no longer the case. The application needs amending or a new lender finding but the sounds of it. 

user1977

housebuyer143 said:

The solicitor will ask for proof they are cleared before they draw down the mortgage funds, 

That isn't even what the condition says. It allows the commitments to be repaid on completion, it doesn't require them to be cleared before completion. And as above, unless the lender asks the solicitors to deal with it, the solicitor is not going to do so. Lenders will (more commonly) trust the borrowers to deal with it themselves. Solicitors aren't paying off credit card bills etc in the normal course of events.

MWT

mrsfiona said:

We have a special condition in our mortgage offer from nationwide 

" this offer is offered on the understanding that he following commitments will be repaid on or before completion of this loan:"...

All but one loan has been paid off, which we said we would never be able to pay off either way! 

I'm with ACG on this one, sounds like the offer is invalid...

... but if that condition lists a debt as needing to be paid, that you were never intending to pay then the offer has always been invalid and hasn't actually been caused by the extra deposit needed...

Why didn't you query this when the offer came through?

housebuyer143

user1977 said:

housebuyer143 said:

The solicitor will ask for proof they are cleared before they draw down the mortgage funds, 

That isn't even what the condition says. It allows the commitments to be repaid on completion, it doesn't require them to be cleared before completion. And as above, unless the lender asks the solicitors to deal with it, the solicitor is not going to do so. Lenders will (more commonly) trust the borrowers to deal with it themselves. Solicitors aren't paying off credit card bills etc in the normal course of events.

Actually I accept that I have read it wrong. If it says cleared at completion they are probably trusting the OP to pay this off themselves. 
I would check with the solicitor if this is the case and then make their own decisions from there.