Devastated

[Life7]

I recently put an offer on a house which was accepted. Solicitor has been instructed and searches currently in progress. My mortgage is all set subject to my car finance being paid off before completion. I was hoping to complete in around 3-4 weeks time so hopefully won't be too long now. The mortgage offer will be withdrawn unless I can pay off the finance beforehand. They will still lend to me however it will be for a smaller amount and not enough to cover the house price or any other properties in the area really.

My mum had planned to get a credit card in her name and pay off the finance for me and then I would pay her back each month over the next couple of years. The balance is around £4,600.
I've just phoned the finance company up now to enquire about something, mentioned that I'd be paying the settlement figure within the next week or so and they've just told me they will not accept credit card payments!!! It has to be direct funds ffs!! I honestly don't know what to do at this point. My mum doesn't have that much in cash and I'm using all my savings to cover the deposit, broker and solicitors fees. I feel so angry at myself that I didn't check beforehand, but equally it doesn't say anything on the paperwork about not being able to pay it off with a credit card.

I've spent weeks trying to sort everything out and jumping through so many hoops to get this mortgage, it's not been easy at all but we finally got there and now this is going to ruin everything! I feel so gutted. I'm not even sure what I want from this thread, just so pissed off and upset.

Sounds like you have two lovely women in your life. Good luck with the purchase. Always try to buy cars outright in future, even if you have to drive something a little older or less glamorous.

I do feel cross when I read things like this though because I know that some people earn more than double the 4.6k you need, and are struggling to find, every single month. There is a yawning gap.

Thats lovely. Glad you've got a plan OP! Moving into a house thats all yours is a great feeling 🙂

I assumed the 'thanks very much' comment was for the best of luck you sent OP

This is fab, OP. I have a generous family too and they have helped me out many times over the past few years, I've paid most of it back, some given as gifts though. I shall do the same for my girls too.

@HurryUpAndWait23 wtf

Glad you got it sorted OP

Well done. Go for the house 👍

What a lovely family you have op.
I'm sure you feel a lot better.
Good luck with the house!

Well done Life, grandma is a hero! Fingers crossed you'll be in your new house soon.

[quote Life7]@CherryHug should I just continue to rent then like I have done for the last 7 years, paying £230 a month more than what my mortgage would be? I've worked really hard to save as much as I have over the years but no I don't have 87k in cash unfortunately!
[/quote]
Yes, as you won't have to tie yourself in financial knots to do so?!

@Life7

Some really good suggestions here, we will look into some of them. Thank you very much. In regards to affordability, I understand what some of you are saying but I have been renting on my own for the last 7 years paying £550 a month and have managed to pay the car finance along with all my other bills. I'm very sensible with money and I've always been a saver rather than a spender. My mortgage will only be £320 so I'll be saving a lot. I am only borrowing 80k (house is 87) which in the grand scheme of things isn't a lot compared to other house prices.

But you won’t be able to save all the difference between the £320 mortgage and the £550 rent. This is because you will need to pay yourself for all the things that your landlord used to pay for.

Insurance, repairs and maintenance, servicing the boiler, service charges, ground rent , care of communal areas, gardens, lighting, cleaning etc.

When the central heating stops working, the roof leaks or the washing machine needs replaced, it’s you who has to arrange it and pay.

I’m sure you know this - of course you do. But it’s easy to forget just how much these things cost and how long they can take to sort.

Good luck in your new home, I hope you are very happy.

@CherryHug sorry, I know I posted in aibu but I completely disagree with you. Are you suggesting that nobody should ever apply for a mortgage then? Why would I continue to rent each month when I could pay less and towards a property that will actually be mine one day? I could continue to rent but for how long, 5 years, 10 years? I've already rented for 7 years and spent 46k paying off someone else's mortgage.
Sorry if I come across as argumentative but your comment has seriously wound me up.

@Life7

Excellent. Granny Saves The Day 💐

So, now onto the exciting stuff, tell us about the new place!!

@IS0D0RA I've already sat down and worked out the difference in costs before applying for the mortgage and I will absolutely be able to save more each month incase of emergencies. Thank you though

[quote Life7]@CherryHug sorry, I know I posted in aibu but I completely disagree with you. Are you suggesting that nobody should ever apply for a mortgage then? Why would I continue to rent each month when I could pay less and towards a property that will actually be mine one day? I could continue to rent but for how long, 5 years, 10 years? I've already rented for 7 years and spent 46k paying off someone else's mortgage.
Sorry if I come across as argumentative but your comment has seriously wound me up. [/quote]
Best to just ignore people who say daft things!

@AlmostSummer21 thank you very much! Exciting times ahead indeed!

Lovely Grandma saving the day! Reminds me of when we bought our first house and we (stupidly) thought stamp duty was paid after completion (and another pay day) but it was due in the final payment to the solicitors! Like you we had a massive panic , but my grandad saved the day, went straight up the bank and lent us 1k to make up the shortfall. He then refused to let us pay him back. I miss him so much, and always remember how he was always there for us. We've since had ten years of paying a mortgage nearly half of what our rent was, so even if we'd borrowed it with interest would have been worth it.
All the best in your new home

You can't pay off loans with more debt. The loan company will ask what the source of the funds are that you are paying it off and to confirm whether you have taken more debt to repay it. I had this recently.

@MistySkiesAfterRain

You can't pay off loans with more debt. The loan company will ask what the source of the funds are that you are paying it off and to confirm whether you have taken more debt to repay it. I had this recently.

She hasn't. It was a gift from her Grandmother

The only daft person here is the OP trying to pay off credit with credit, and expects to get a mortgage.

You might not like it but I am entitled to my opinion.

Some credit cards do cash transfers.

Or you mum could get a loan? Probably better interest-wise?

If you read the whole thread you'd see she is sorted now. No loans etc

To be honest if your mortgage lender knew you were effectively transferring a debt from a car HP company to owing money to your mum instead they probably would revoke the offer. They would still consider that you owe a debt to your mum that you have to make monthly payments to that hasn’t been captured in your affordability fact find.
Strictly speaking you haven’t fully disclosed this material fact on your application which technically is a breach of contract.

Mortgage adviser here.