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Refrain From Taking Out Further Credit After A Mortgage Bond Has Been Approved

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Refrain From Taking Out Further Credit After A Mortgage Bond Has Been Approved

It is advisable for all property purchasers and potential purchasers not to take out any other form of credit or consent to any form of credit check after having had a bond or mortgage finance approved when buying a property.

This may for example be a new clothing accountrenting or signing a lease for a child at university, taking on a second or third credit card or entering into a new or additional cell phone contract, to name but a few.

This may cause the bank which is issuing the mortgage bond for the purchase to reassess and reject to not take up (NTU) the bond and thus cause a deal to be cancelled. This type of action could be viewed as a material breach by the Purchaser or Purchasers, even if they were not aware of the consequences. 

Therefore, it is of utmost importance that all parties purchasing property ensure that they do not take out of any other form of credit from any other credit provider, no matter how innocent it may seem.

Author ESI Attorneys
Published 22 Apr 2021 / Views -
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