Help! Mortgage application panic...

KittyRox

I wonder if anyone on here is able to help me with a worry I have now going over and over in my mind.

My partner and I are buying a property. Well, tbh, he is as I am a credit NIGHTMARE!

He has an agreement in principle and is going through the process of application now. We don't yet have the mortgage offer.

However, the question is this.

We bought a large household item on interest free credit in order to avoid the VAT increase. This obviously was another credit application is his name.

Now I am panicking that this will affect the mortgage.

We could cancel the agreement, as it is within the first 14 days, but is the damage (if there is any) already done?!

I am really scared now and I can't really have this discussion with him at the moment as I don't want to unduly panic him or cause issues.

Any thoughts/advice!?! All greatly appreciated...

Reactor_2

You need to have a chat with your partner as the impression you are giving is that he doesn't know about this large household item.

Your mortgage provider will decide if they think your partner can afford the home you have bought. When I took out my mortgage, the worst thing about my experience was when the provider's valuation of the property was less than what I had agreed to pay with the seller. This meant I had to come up with the difference, but luckily I had the money.

I hope you are not leveraged beyond your means as future interest rate hikes will severely impact your relationship if you're at the limit already.

KittyRox

He knows about the item! :-) He just doesn't know about my panic!! I simply don't want to worry him if this is simply me being paranoid.

What you've said makes sense to me - he can well afford both. Sounds like I should be panicking about the valuation now instead! :-S

Edited -

I have now just seen advice elsewhere on the site which was not to make these credit applications for furniture. Oh dear.

Can this type of thing make a massive impact? My partner has only one credit card with a zero balance, but is self-employed. He does have a loan, however, and I am now thinking that this extra credit could knock his score down.

If we did cancel the new credit though, would that not be just the same?!

I think I had better get some sleep and hope that someone who understands these things is able to explain it to me.

Thanks so much in advance all readers.

poppysarah

What are you doing to sort your own credit file out?
You should work on that as much as you can.

KittyRox

Good point!

I am ensuring that I start to face the debt head on, rather than just ignore it.

I already have a mortgage of my own, which I bought with an ex-partner. I rent that out which covers that mortgage. My credit issues are simply (haha!) that I have a lot of loan/credit card accounts. I never struggle to pay the minimum on any of them (I have NEVER missed a payment), but have maxed out my credit (if you see what I mean). I am careful not to get any new accounts/footprints on my own credit rating - which is why this purchase is in partner's name in the first place.

Indeed, part of the reason for the move is to assist me manage my own outgoings and start to pay down the debt. I will start paying off and extra £400 a month once my partner and I begin to live together.


I am doing the best I can to sort myself out -- part of the reason that I am so nervous/paranoid about all this is my own credit issues.

KittyRox

All

Thanks for the support so far...

I have checked the credit rating this morning, and it does seem to have plummeted - from around 900 to 700!!

However, the mortage company has already done their own check (as well as a previous company who would not lend the LTV we needed). This gives us three checks in the last six months - which is what seems to be affecting the score...

Does anyone think this is going to be a massive problem or am I simply worrying too much? I guess what is done is done, but I am really hoping that I am pankicking over nothing.

iwb100

I'm no expert but from experience I'd be surprised if this made any real difference either way. If you've made multiple credit applications (and note its the application that counts) recently then that could affect things.

But if he has just made one application and I presume for a relatively (compared to the mortgage) small amount then in my experience this is unlikely to tip things. I've done similar and not had any problems when it came to the mortgage application.

If however, he is borderline in terms of salary, credit score, etc then of course smaller things can tip applications one way or another in my experience.