This was one of the conditions:

“You have declared an intention to repay some or all of your outstanding credit commitments. The mortgage advance has been assessed on this basis and it is your responsibility to ensure that these commitments are repaid. Completion takes place on the condition that such repayment takes place”.

Do they want us to pay all existing debt off first?

well if you ve made a declaration to repay all or part of your loans/ debt then i guess they expect you to stand by your part of the bargain..

well if you ve made a declaration to repay all or part of your loans/ debt then i guess they expect you to stand by your part of the bargain..

It only says some. Give your mate his fiver back and you’re covered.

Do they want us to pay all existing debt off first?

I think you need to ask them that.

You really don’t want to have to pull out of moving in because a bean-counter spots this on the day you’re waiting to get the key, with a truck full of furniture outside. I was going to say, “Don’t bother…etc” until I saw the last sentence.

As above – very much depends what you told the mortgage co when you applied for the mortgage.

Apologies if you know this bit but in case not they work out how much you can borrow by looking at your salary minus credit commitments multiplied by an number (usually 3 times for single applicant and 3.5 time for a joint applicant or somewhere around there).

So, you earn £1500 p/m but have £500 in debt payments – they work on the £1k left.

So, if you have asked to borrow x amount and you have told them that y amount will be used to service existing debt to say lower your debt repayments to £200 p/m they will have assessed the mortgage amount on £1300 salary.

If you do not repay the debts as agreed you are in effect borrowing x amount but with only £1k p/m to service the mortgage which isn’t what they decided their offer on.

If you have told them that you will repay an amount of your debts first using money not related to the mortgage then yes, they will check you have paid off the agreed amount. Mortgage co’s are still very twitchy about lending criteria etc. Did you state an amount to them or was it just left as ‘some’?

If you have not told them that you were going to pay off some debt then it is a strange clause and I would be on the phone to them to clarify.

Cheers

Danny B

I’d just pay “some” of it back and see if you get away with it 😈

Cheers, I’ll call the mortgage advisor in the morning I think its to do with mrs Wollys uni debts (she’s just finished) sure it’ll be fine

If you told them you were going to clear a credit card or something before starting the mortgage, they can (and might) check.

Having said that, the level of shit they’d dump you in if you exchanged and then failed to get the money through is so deep that I wouldn’t be worried. I think I had a similar clause in mine, but I had specifically mentioned £1500 outstanding on my credit card when I applied.