Can I get a home improvement loan for a property that has already been mortgaged?

Hi

I am looking for some advice. We used a broker to help
us find a mortgage as we didn't have the best of credit profiles. I had an IVA in the past which was completed just over two years ago before we applied and my husband had some missed payments and about 7 defaults for various reasons. We got approved for a mortgage on the basis we cleared all our existing debts before completion. Our broker got us to clear all our debts and send proof of all these being settled back then as he said by delaying settling them further down the line is likely to delay completion. So we did what was asked and I also have in writing that they were not going going to perform another credit check. Since then we have had to put two cars through an mot and I brought a couple of bits for the new house and had to get a couple of things done in the old house before selling repair to boiler and toilet. I didn't want this eating in to our deposit money so I found myself a 9 month interest free credit card for purchases and have put it all on there. The lender came back to our solicitor last week and said they are waiting for evidence of all the debts settled which our broker told us he'd sent and we were all good to go. He's also said they may perform another credit check, in which case they will see we both have some balances on our credit cards again if they do. I'm going out of my mind now about the problems or issues we face getting this mortgage through. As our broker now knows we have balances is he obliged to tell the lender? Is the lender going to run another credit check, despite having in writing from our broker that they said they wouldn't run another one? Could the lender withdraw the offer thinking we can't manage financially from month to month, despite me getting an interest free card and setting up a fixed direct debit amount that covers the balance in full before the interest free period ends? I don't think they will see it this way will they. If the conditions say all the debts listed are to be settled on completion but I have took out two new ones, can they add these to the conditions still and ask us to settle them in full and prove this before completion? We did what they asked back in January and now we're about to complete we find out they didn't have all the documentation they needed that we we're under the impression they had. Does anyone have any idea whose at fault and what we can do to put it right and get this mortgage to complete successfully? Does anyone have any idea of which way it is likely to go, being this close to completion now? My husband and I felt sick last night with all the worry and thinking worst case scenarios. We must get this house as prices have risen since November for the types we want faster than what we are selling and we're at our max mortgage amount and deposit amount, having had to settle all our debts out of our deposit money, which was about 12k in total between us. We're currently in a cramped small two bed with two young boys and no where to store anything. The house is cramped and always looks untidy and we don't have a garage. It is also shared ownership, where as we're moving to a freehold property which will also help us in the long run. Any advice on tips of what anyone knows would be gratefully received in order to get this mortgage. Thank you. Kind regards Chantal

Hi David, how are you supposed to take being told they have everything they need and no more credit checks will be performed? Not as gospel then? Our broker is now aware. Is he obliged to tell the lender what he now knows? Would they see it we can't cope financially before the new mortgage and withdraw the offer, despite me setting up a fixed monthly amount to settle the credit card balance when the interest free period ends and paying no interest for the borrowing, so basically sensible and controlled borrowing? Kind regards Chantal

Can you please elaborate on this? What do you mean any new debt falls in to what category? Does the broker have to tell the lender?