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  • FIRST POST
    • Embo122
    • By Embo122 10th Nov 18, 8:49 AM
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    Embo122
    A bit confused - order things are done when selling/ buying
    • #1
    • 10th Nov 18, 8:49 AM
    A bit confused - order things are done when selling/ buying 10th Nov 18 at 8:49 AM
    Morning everyone,
    I am naturally a worrier and stress very easily, so selling our house and buying another has sent my anxiety levels rocketing! This is probably a very straightforward question, so I hope someone will be able to help me.

    We have sold our house for 127500 with an outstanding mortgage of 2500. This gives us 125000, with 86000 being used as a deposit on the house we are buying. We have been offered a mortgage we are happy with, and have about 8000 of outstanding cc and loans to pay off, which we agreed to do from the funds of our sale. This is what the mortgage agreement is based on.
    Yesterday, out of the blue we received a loan statement with a settlement figure (the loan stands at 3800 and was what we were going to pay off with the money from our sale and is secured against the house). This has got me worrying that I need to pay this now.
    So, my question is, do I need to pay this before the sale goes through - I could do this as we have a bit of savings but this would then leave us short just before Christmas - or will it just get sorted when we get the money for the house? We have been given the impression that the remaining mortgage, loans and credit cards will all come out of our sale money - which is what we want.
    I hope this makes some kind of sense! Since we started this house moving malarkey I have found it incredibly difficult because you really don't know what's happening, even though it's all moving on behind the scenes - or at least I hope it is
Page 1
    • davidmcn
    • By davidmcn 10th Nov 18, 9:43 AM
    • 9,077 Posts
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    davidmcn
    • #2
    • 10th Nov 18, 9:43 AM
    • #2
    • 10th Nov 18, 9:43 AM
    Yesterday, out of the blue we received a loan statement with a settlement figure (the loan stands at 3800 and was what we were going to pay off with the money from our sale and is secured against the house). This has got me worrying that I need to pay this now.
    Originally posted by Embo122
    Were you due to pay it off now? Why "out of the blue"? Is this just a figure requested (by your solicitor perhaps?) to check how much it will actually cost to pay off the loan now?
    • Embo122
    • By Embo122 10th Nov 18, 9:56 AM
    • 2 Posts
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    Embo122
    • #3
    • 10th Nov 18, 9:56 AM
    • #3
    • 10th Nov 18, 9:56 AM
    Thank you for the reply. I'm guessing the solicitor asked for it....we didn't. I'm just worried that it might hold things up if I don't pay it now. The mortgage is based on the fact that this will be paid as will out credit cards - which is what we always planned to do upon completion. Looking at the mortgage agreement it says...

    The offer is made on the basis that the applicants will repay the following loan from the proceeds of the advance: 3880

    I have just noticed that they have the loan as unsecured, whereas it is secured....
    • G_M
    • By G_M 10th Nov 18, 10:07 AM
    • 45,954 Posts
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    G_M
    • #4
    • 10th Nov 18, 10:07 AM
    • #4
    • 10th Nov 18, 10:07 AM
    ...

    The offer is made on the basis that the applicants will repay the following loan from the proceeds of the advance: 3880

    .....
    Originally posted by Embo122
    so when you get your new mortgage you have to pay off this debt.


    But rather than ask a vague question of a load of strangers wo don't know what you/your solicitor have requested, or what financial comitments you are signed up to and on what terms, why not ask the lender......?


    Given the question, I also wonder what else you are unfamiliar with in relation to this multi-hundred-thousand pound scenario you are launching into?


    Your library will have free books to help you eg


    https://www.amazon.co.uk/How-Buy-House-Kirstie-Allsopp/dp/1444790633
    • davidmcn
    • By davidmcn 10th Nov 18, 10:14 AM
    • 9,077 Posts
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    davidmcn
    • #5
    • 10th Nov 18, 10:14 AM
    • #5
    • 10th Nov 18, 10:14 AM
    I'm just worried that it might hold things up if I don't pay it now.
    Originally posted by Embo122
    What makes you think you need to pay it now?

    I have just noticed that they have the loan as unsecured, whereas it is secured....
    In which case you'll need to repay it on completion of the sale anyway, it doesn't matter what your new mortgage conditions say.
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