Mortgage advice needed..I'm going out of my mind!

[gapmichael 10]

Hi everyone

 

I have recently received my mortgage offer from Nationwide. At the end of the contract there is a section which shows "Special Conditions" and in this section there is a clause which states :

 

"This offer is issued on the understanding that the following commitments will be repaid on or before completion of this loan: Credit card with an approximate balance of £700 Credit card with an approximate balance of £1500"

 

When I applied for the mortgage the questions relating to Credit Cards were : What is the outstanding balance of your Credit Cards and I put £1000 and the £1800 respectively. The next question was "At the time of completion, what would you expect the balances of these cards to be?" to which, my response was £700 and £1500 respectively.

 

Is this special condition worded REALLY badly or do you interpret it as they want these balances to be £0 on or before completion.

 

I tried to call them my Solicitor on Friday afternoon but he had left for the day and all weekend I have done nothing but worry.

 

Anyone seen this before or had experience of it?

 

Any advice would be gratefully received

 

Thanks in advance

 

Michael

[Astraeus 10]

It is a condition that you pay off both credit cards in full. It isn't an unusual condition, either.

 

Do you have a broker already?

[gapmichael 10]

No. I've gone direct. There are conflicting messages when I do a Google search.

 

I've put all that I have towards my deposit and so if they want these cards with a £0 balance by the time I complete, I'll need to pull out of buying the house

[Ha3el 10]

rather than pull out of buying your house it shouldnt be too difficult to find another mortgage if it really came to that - going through a whole of market independant broker might help. call your mortgage company in the morning though and discuss it first. There might be an explanation - perhaps is just a mistake at their end.

 

we had credit cards when taking out our mortgage and all of it was disclosed, long as you pass affordability checks it shouldnt stop you getting a mortgage, even if worst case scenario its with another company

[verona 10]

You should find yourself an independent mortgage advisor, one that is whole of market and doesn't charge you anything. They can sift through all this rubbish and explain it in black and white. They will find you a better mortgage too, one that suites your needs.

 

I would never trust going to a bank directly, they are there to fleece you, not help you.

[gapmichael 10]

Some great advice here. Thank you. I'll call them tomorrow and see what they say. I'll update here just incase the advice might help someone else.

 

Thanks again

[Danny_Boy 10]

You should find yourself an independent mortgage advisor, one that is whole of market and doesn't charge you anything. They can sift through all this rubbish and explain it in black and white. They will find you a better mortgage too, one that suites your needs.

 

I would never trust going to a bank directly, they are there to fleece you, not help you.

 

Not many whole of market brokers out there that don't charge fees anymore. Since April 2014 the work involved with obtaining a mortgage has tripled and the commission paid by lenders has stagnated. Good luck if you can find one but you know the age old saying, you get what you pay for.

 

---------- Post added 15-08-2016 at 09:19 ----------

 

Ps to the op most mortgage offers have conditions and Nationwide do ask some random questions about outstanding liabilities, it sounds to me as though the advisor in the bank has put that your credit cards will be zero on completion. That does not mean you won't be able to complete you need to speak to the original advisor and get the condition removed from the offer. If you still meet their affordability criteria then great you can complete if not you'll either need to repay the commitment or find another lender with less stringent affordability rules.

 

May I suggest you go onto Nationwides website and use their affordability calculator this may give you some peace of mind whilst you wait for the advisor to get back to you.

Edited August 15, 2016 by Danny_Boy

[ShefStealth 10]

Whoever you go with for your mortgage, if the Credit Card issue comes up then you need to be forthright and argue that Credit Cards are unsecured borrowing, where as your mortgage loan application is going to be borrowing secured against the value of your property. That you realize that being a different type of borrowing means that to you as the client, it carries a different value of risk and would of course therefore always prioritize the repayment of your mortgage above the repayment of the credit cards.

 

You also need to push the fact that (assuming that you haven't had other mortgages/loans prior to this one, first time buyer?) you have credit cards partially as a means to build up a credit score/profile to help allow the evaluation of your worthiness to get a mortgage - your history of repayment to the cards if done carefully (in full, on time each month if possible etc.) helps demonstrate your ability to repay.

 

*edit* You could also be a little brass necked, if paying for the services of the mortgage broker by your credit card you also state that another reason you have the cards is that transactions to pay for goods and services between the value of £100 and £30K is covered by section 75 of the consumer credit act and gives you extra protection - so if their quality of service is sub-par and not up to the standards of your agreements (verbally and in writing) then you have that as an extra value insurance option. Know your rights in all situations. Companies and their employees are then less likely to screw with you. It's surprising how much being an informed customer then sharpens the abilities of companies to then provide better customer service.

Edited August 18, 2016 by ShefStealth
extra thought

[Cyclone 10]

If he were repaying in full each month then a £0 balance wouldn't be an issue would it.

[ShefStealth 10]

If he were repaying in full each month then a £0 balance wouldn't be an issue would it.

 

That would be in an ideal world, I did say 'if possible' - but for the purposes of credit evaluation they look at long term overall trends. The fact that there is a balance on there now mightn't be indicative behavior generally if for the previous 3 years they've usually cleared the balance or had a minor value left over.

 

Posts are meant to be viewed by the masses and are more useful if they can be used as a guide to the majority, not just specific circumstance and my previous was advising in general i.e it's better if you can clear your balance each month or show good repayment history as it gives you a better argument when going into these sorts of negotiations.

[gapmichael 10]

Just a quick update. I contacted my solicitor who confirmed that the cards would have to be repaid in full as stated in the offer. I contacted the mortgage company to ask if the condition could be removed. He sent an email to the underwriters who are currently working on a 4-day turnaround and so I haven't heard back from them yet.

 

In the meantime, I contacted a mortgage broker (thanks Danny_Boy). Mortgage broker put an application forward to another mortgage provider on Monday. Today is Friday and my offer came through today from the new provider with no conditions attached.

 

You guys are the best!

 

Thanks a bunch

[Danny_Boy 10]

Just a quick update. I contacted my solicitor who confirmed that the cards would have to be repaid in full as stated in the offer. I contacted the mortgage company to ask if the condition could be removed. He sent an email to the underwriters who are currently working on a 4-day turnaround and so I haven't heard back from them yet.

 

In the meantime, I contacted a mortgage broker (thanks Danny_Boy). Mortgage broker put an application forward to another mortgage provider on Monday. Today is Friday and my offer came through today from the new provider with no conditions attached.

 

You guys are the best!

 

Thanks a bunch

 

Congratulations!