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  • FIRST POST
    • Pegasaurus
    • By Pegasaurus 13th Jun 18, 9:34 AM
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    Pegasaurus
    How best to describe a standing order to mortgage lender?
    • #1
    • 13th Jun 18, 9:34 AM
    How best to describe a standing order to mortgage lender? 13th Jun 18 at 9:34 AM
    Hi all - and especially the ever helpful brokers on here!

    We're at the final hurdle with a potential mortgage lender as we attempt to remortgage to a really good rate. Passed credit checks, looks like valuation is OK, etc. However they've been through my bank statements and are understandably querying a standing order to my parents tagged 'loan'.

    What's your advice re: how to respond. If I say "it was to repay our contribution to a group family holiday and that was the final payment" it sounds a little too convenient, right? What sort of follow up/proof would they likely want? There's no documentation for the loan or anything so nothing to produce.

    Thanks in advance.
    Last edited by Pegasaurus; 14-06-2018 at 5:59 AM.
Page 1
    • zx81
    • By zx81 13th Jun 18, 9:36 AM
    • 17,256 Posts
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    zx81
    • #2
    • 13th Jun 18, 9:36 AM
    • #2
    • 13th Jun 18, 9:36 AM
    What's your advice re: how to respond. If I say "it was to repay our contribution to a group family holiday and that was the final payment" it sounds a little too convenient, right?
    Originally posted by Pegasaurus
    If that's what it is, go for it.
    • Pegasaurus
    • By Pegasaurus 13th Jun 18, 9:38 AM
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    Pegasaurus
    • #3
    • 13th Jun 18, 9:38 AM
    • #3
    • 13th Jun 18, 9:38 AM
    Thanks. Is an anecdotal response usually enough to pass muster?!
    • ACG
    • By ACG 13th Jun 18, 9:43 AM
    • 17,032 Posts
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    ACG
    • #4
    • 13th Jun 18, 9:43 AM
    • #4
    • 13th Jun 18, 9:43 AM
    You have to tell the truth, so if that is what it is, that is what it is. All you can do is tell them what it is and see what they come back with.
    I am a Mortgage Adviser
    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.
    • Pegasaurus
    • By Pegasaurus 13th Jun 18, 9:44 AM
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    Pegasaurus
    • #5
    • 13th Jun 18, 9:44 AM
    • #5
    • 13th Jun 18, 9:44 AM
    Thanks. Well, it won't be on the next month's bank statement so if they need to see that, it's no problem.
    • marmitemum
    • By marmitemum 13th Jun 18, 6:24 PM
    • 58 Posts
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    marmitemum
    • #6
    • 13th Jun 18, 6:24 PM
    • #6
    • 13th Jun 18, 6:24 PM
    Is that what it was for? I would advise telling the truth, keeps things simple. If that is not for what it is, and you tell a porkie, remember that they may seek comfirmation from your parents and that involves them in the porkie too.
    Last edited by marmitemum; 13-06-2018 at 6:30 PM.
    • Pegasaurus
    • By Pegasaurus 13th Jun 18, 7:32 PM
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    Pegasaurus
    • #7
    • 13th Jun 18, 7:32 PM
    • #7
    • 13th Jun 18, 7:32 PM
    Yep. But regardless, strikes me that only legally binding financial commitments should factor into decision making. Although I know the whole gifted deposit thing for first time buyers must be a big factor for lenders.
    • A Nice Englishman
    • By A Nice Englishman 13th Jun 18, 7:46 PM
    • 2,014 Posts
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    A Nice Englishman
    • #8
    • 13th Jun 18, 7:46 PM
    • #8
    • 13th Jun 18, 7:46 PM
    Thanks. Well, it won't be on the next month's bank statement so if they need to see that, it's no problem.
    Originally posted by Pegasaurus
    Is this the 22k you owed your parents last November?
    • Thrugelmir
    • By Thrugelmir 13th Jun 18, 8:34 PM
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    Thrugelmir
    • #9
    • 13th Jun 18, 8:34 PM
    • #9
    • 13th Jun 18, 8:34 PM
    However they've been through my bank statements and are understandably querying a standing order to my parents tagged 'loan'.
    Originally posted by Pegasaurus
    Did you declare the "loan" on your application form?

    Likewise before signing the form did you read the declaration that you were signing.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Pegasaurus
    • By Pegasaurus 13th Jun 18, 8:53 PM
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    Pegasaurus
    Englishman: no - that was covered by additional lending with my current mortgage provider (which is why I'm moving lender, to combine the sub-accounts)

    Thrugelmir - no, because the remortgage isn't until August so didn't see it as relevant.
    Last edited by Pegasaurus; 13-06-2018 at 9:01 PM.
    • BoGoF
    • By BoGoF 13th Jun 18, 8:57 PM
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    BoGoF
    So will the loan be paid off by August?
    • Pegasaurus
    • By Pegasaurus 13th Jun 18, 8:59 PM
    • 25 Posts
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    Pegasaurus
    Yes. No more repaying that loan.
    • Pegasaurus
    • By Pegasaurus 13th Jun 18, 9:22 PM
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    Pegasaurus
    I've just checked the application form the broker sent to the lender (as opposed to the one I sent to the broker) and it doesn't tally up so I've just emailed the MA to find out why. Looks like costs haven't been broken out correctly and that credit card repayment is much higher than reality.
    Last edited by Pegasaurus; 13-06-2018 at 9:31 PM.
    • Thrugelmir
    • By Thrugelmir 13th Jun 18, 9:37 PM
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    Thrugelmir

    Thrugelmir - no, because the remortgage isn't until August so didn't see it as relevant.
    Originally posted by Pegasaurus
    Doesn't matter what you consider to be relevant. The application form is a statement of fact. That you declare to be accurate and correct. Failure to do so potentially undermines the relationship and causes concerns. The consequences of which can be severe. As lenders do share application data through a shared resource if needs must.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Pegasaurus
    • By Pegasaurus 13th Jun 18, 9:42 PM
    • 25 Posts
    • 4 Thanks
    Pegasaurus
    I understand. But as the form was submitted after the final repayment was made that's why I didn't specify it. Also, honestly, I thought it was only financial commitments to regulated lenders that went into that section.
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