Undertaking to redeem debts as part of mortgage

rdsmortgageman

Not suggesting anything of the sort. What I am suggesting is that it will allow you to get into the house and then try and come up with a way of paying off existing outgoings, i.e. consolidation loan from bank with lower payments that you can afford. My only other suggestion is to look at another 95% LTV lender with higher income multpliers and no HLC that will allow you to retain your existing credit commitments.

MarkyMarkD

But the OP's point is that the original debts are affordable, and low rate.

Taking a consolidation loan wouldn't help matters - it would merely increase the rate (and total cost) whilst (maybe) slightly reducing the payments.

Lenders' attitude to low-rate existing debt is very blinkered. I currently have £30k in 0% credit card balances, and many mortgage lenders - at least according to their online "how much can I borrow" calculators will deduct huge amounts from their standard lending multiples in respect of this "borrowing", even though I actually have the cash to pay it off if I so pleased.

kingpoultry

MarkyMarkD wrote: »

You are being slightly thick, kingpoultry, but don't worry about.

Let me translate what rds is saying:

- Lie to Nationwide
- Tell them you will pay off the loan and credit cards
- Don't pay them off
- Hope that Nationwide won't check (because, almost definitely, they won't).

End of story.

Does that make it clear enough?

I am not condoning what rds is suggesting, merely translating to make it easier for you to understand.

As a matter of principle it is very bad to lie to someone who is lending you money to buy your home.

Thanks, that does make it clearer!

I will think things through and chat with my broker again, I'm not panicing as much as I was, because I now see...it's not ideal, but there's a risk of getting 'caught out' but getting the flat and crossing the redeeming-debt bridge when I come to it (so to speak) or walking away and risk not getting another mortgage for goodness knows how long.

Thanks for advice one and all

AndrewSmith

FraudBuster wrote: »

Nationwide employees read public forums.

So do the FSA, and they do note the 'advice' given on these forums and by whom it is given.

wisbech_lad

Ugh, you are having to be given the deposit by bank of mum & dad, and you are in debt that you are finding it difficult to pay off.

Are you sure you can afford this?

Dan_Collins_2

AndrewSmith wrote: »

So do the FSA, and they do note the 'advice' given on these forums and by whom it is given.

Well if they are....

FSA stop wasting your time in here when you could be talking to lenders about the rules they are breaking and you could assist the OFT taking the lenders to task over the unfair direct product mess!!

To the OP, Nationwide and many lenders have in the past taken your word for it. By you giving an undertaking to redeem the loans and not you are breaking the law. If you fall in to arears for whatever reason and you have not paid your loans off you will not stand a chance. If Nationwide feel that you cant afford the loans and the mortgage then you need to think before you jump.

Although I dont think the bank of mum and dad has anything to do with it.

silvercar

FraudBuster wrote:

Nationwide employees read public forums.

AndrewSmith wrote:

So do the FSA, and they do note the 'advice' given on these forums and by whom it is given.

Anyone who is worried about any comeback from posting, whether by offical authorities or friends finding out their business, would be well advised to choose their username accordingly.