Help!! Mortgage offer...

[Gemxo]

Hi,

So we received our mortgage offer but in this part we're it talks about debts we need to pay off before completion it states credit card balance '£200' now does this mean I need to have £200 paid off my current balance so taking it from £1500 to £1300 or does this mean the balances need to drop from £1500 to £200!?!?

Thanks!

Also to add when we was doing the application with our mortgage broker I did say I could pay off around £500 of my credit card before completion but this has now confused me into thinking the bank wants both balances practically paid off, or am I understanding it wrong....

It means that you have to pay off all your outstanding debts as they are listed on the form. You must have a credit card with £200 on it that you must clear. A vanquis card?

@Atalune that doesn't make sense though, if that was the case wouldn't it say a balence of £1300 not £200?

What did you tell them the balances were when you applied for the mortgage?

It reads as though they believe the approximate balances to be £200 and these must therefore be cleared.

If the balances haven’t suddenly increased then I think they may have made a mistake? It certainly reads that they want all those debts to be repaid before you complete the mortgage.

I expect you broker has misunderstood what you said and thought you had £500 of debt on the cards not that you could pay £500 off.
Speak to your broker and check what they put in your application.

I read it as if you must pay all those amounts off specifically, but you can do it using your mortgage: 'these debts may be repaid from the proceeds of this loan.

But it does say you can use the mortgage to pay off these too so if you have applied for a mortgage bigger than the value of the house, we did this years ago, took an extra £7k for a new kitchen the solicitor just transferred the balance to us once completed.

Posted too soon...but that you MUST pay them off by completion.

Crossed with said

This is mostly the lender covering their back as their affordability calculator only works if these debts are excluded- they won't check and they don't need to be cleared until after the new mortgage has started as they say you can use the mortgage monies to clear them. Don't worry too much about the finer detail

The broker is fully aware my card balances are both £1500 and he did put this in our application, this is why it's confusing me,

He asked me how much I could pay off by completing and I told him around £500, I've paid off £600 up to now and we still don't complete for another 2 months

Completion*

The bank are expecting you to clear all the debts mentioned by name in the letter.

The amounts are what the bank believe the debt to be and are largely irrelevant. You need a 0 balance before they'll proceed.

Thanks for the advice but I will need to ring them to confirm,

My partner has just called our mortgage broker who has said it means we need to pay off £200 on each card taking the balances to below £1300

So now I'm more confused as you are all telling me different

Seriously? Just ring them.

Will have to wait till Monday to ring them as there closed on weekends! 😩

You need to pay off the debts what it states so pay off 200 on cc etc.

Be a bit longer I'm afraid - Tuesday... so forget about it for now and enjoy your weekend.

@Sunshineintheclouds that's what I thought it meant but as you can see a lot of people on here are saying different, both my CC balances we're £1500, I've now paid off £600 so I've technically done what the banks asked but now everyone's got me thinking it's wrong! Ahhh

@TinyBarista what are the chances it's a bank holiday when I need the bank ha!

It that’s what the mortgage broker says then go with that!