Help

Mrp791

Hi I’m After some advice having a panic. We went to a broker and explained we have a plot of land for sale £190k. With this we want to use £150k as a deposit £20k to pay off any debts , car loans,cc, and overdrafts and final £20k is for solicitors and just some left over for savings. We have no ccjs or defaults , never missed rent etc.

Theyve applied to nationwide for £317,500k mortgage as we’ve had an offer excepted . They’ve come back to us they need proof of debts showing £0 balance but our sale hasn’t gone through yet will this be an issue with such a large deposit almost 50%. Our sale of our land is currently going through so further on than the buying of a house side of it. In theory we should have paid debts of way before completion hopefully 

Many thanks

housebuyer143

Mrp791 said:

Hi I’m After some advice having a panic. We went to a broker and explained we have a plot of land for sale £190k. With this we want to use £150k as a deposit £20k to pay off any debts , car loans,cc, and overdrafts and final £20k is for solicitors and just some left over for savings. We have no ccjs or defaults , never missed rent etc.

Theyve applied to nationwide for £317,500k mortgage as we’ve had an offer excepted . They’ve come back to us they need proof of debts showing £0 balance but our sale hasn’t gone through yet will this be an issue with such a large deposit almost 50%. Our sale of our land is currently going through so further on than the buying of a house side of it. In theory we should have paid debts of way before completion hopefully 

Many thanks

Did your broker say you would be paying off the debts before completion? If so, you need proof to your solicitor before you complete.
If not, you need to declare you are not paying them off before completion and they will take your debt into account for mortgage affordability.

Mrp791

housebuyer143 said:

Mrp791 said:

Hi I’m After some advice having a panic. We went to a broker and explained we have a plot of land for sale £190k. With this we want to use £150k as a deposit £20k to pay off any debts , car loans,cc, and overdrafts and final £20k is for solicitors and just some left over for savings. We have no ccjs or defaults , never missed rent etc.

Theyve applied to nationwide for £317,500k mortgage as we’ve had an offer excepted . They’ve come back to us they need proof of debts showing £0 balance but our sale hasn’t gone through yet will this be an issue with such a large deposit almost 50%. Our sale of our land is currently going through so further on than the buying of a house side of it. In theory we should have paid debts of way before completion hopefully 

Many thanks

Did your broker say you would be paying off the debts before completion? If so, you need proof to your solicitor before you complete.
If not, you need to declare you are not paying them off before completion and they will take your debt into account for mortgage affordability.

We said to our mortgage advisor we would be paying it off before we completed . But don’t think they originally told nationwide . I’ve re sent it to mortgage advisor as someone else has taken our case over as the original person is now off work. 

We’ve shown the broker the memo of sale and the amount of money we have after we’ve put down the deposit etc . £40 k is left which is for solicitors. And roughly £20k to pay joint debts with an extra 10k in our pocket

sheramber

Have you considered CGT on the sale of the plot of land?

Mrp791

Tsheramber said:

Have you considered CGT on the sale of the plot of land?

here is no cgt to pay it was a gifted plot of land  and it’s being sold slightly lower than the valuation!
this is what I’ve been told