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Personal loan repayment clause for mortgage
FredBs
Posts: 1 Newbie
Hi all,
I know there have been a number of threads on this topic but not specifically related to terms following completion.
I received a Mortgage offer from Accord this week (yay!) and in the application I confirmed that I would repay the amount remaining on a credit card (£4k).
In the offer it states:
" You must repay all the personal loans and/or credit card debts that you have told us you intend to pay within seven days of completion of your loan. If you do not repay those debts within that timescale you will be in breach of your obligations to us. Our affordability assessment has been completed on the basis that these debts will be repaid; failure to repay these could affect your ability to maintain your mortgage payments during the term of the Loan."
My question is how likely are they to check that this has been paid if the funds have already been cleared?
The reason I ask is because it is looking like completion may be sooner than anticipated and I may not be able to pay this off in time.
I know there have been a number of threads on this topic but not specifically related to terms following completion.
I received a Mortgage offer from Accord this week (yay!) and in the application I confirmed that I would repay the amount remaining on a credit card (£4k).
In the offer it states:
" You must repay all the personal loans and/or credit card debts that you have told us you intend to pay within seven days of completion of your loan. If you do not repay those debts within that timescale you will be in breach of your obligations to us. Our affordability assessment has been completed on the basis that these debts will be repaid; failure to repay these could affect your ability to maintain your mortgage payments during the term of the Loan."
My question is how likely are they to check that this has been paid if the funds have already been cleared?
The reason I ask is because it is looking like completion may be sooner than anticipated and I may not be able to pay this off in time.
0
Comments
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I’d say it was very likely they will check.1
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I had a similar thing happen once many years ago. My solicitor refused to complete on the sale until I could either prove that I had paid it off or I had provided them with the funds so they could pay it off on my behalf.
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FredBs said:
The reason I ask is because it is looking like completion may be sooner than anticipated and I may not be able to pay this off in time.
I appreciate I'm stating the obvious and no doubt you've asked, but can you not ask for completion to be delayed? If nobody was expecting it so early, will anybody object?
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Do you need to repay the commitment to meet affordability for what you need to borrow?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Whether the solicitor is instructed by the lender to do this, is a different question (and in my experience it's pretty rare). Not sure that they'd bother in this situation where it's not even a requirement to redeem the existing loan simultaneously with completion.ciderboy2009 said:I had a similar thing happen once many years ago. My solicitor refused to complete on the sale until I could either prove that I had paid it off or I had provided them with the funds so they could pay it off on my behalf.0 -
they dont all tend to check its completedDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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The "Hunter" system - seeFredBs said:....
My question is how likely are they to check that this has been paid if the funds have already been cleared?
....
https://www.experian.co.uk/business-products/hunter
- very likely already knows all your loans etc etc ...
Do you want to end up on a black-list of dodgy borrowers???0 -
My solicitor made me send a statement showing credit card was cleared.0
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hunter is for applicationstheartfullodger said:
The "Hunter" system - seeFredBs said:....
My question is how likely are they to check that this has been paid if the funds have already been cleared?
....
https://www.experian.co.uk/business-products/hunter
- very likely already knows all your loans etc etc ...
Do you want to end up on a black-list of dodgy borrowers???Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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