Advice needed on mortgage.

xTheBearx

Hi there.

I move into my new property on the 1st july, 5 weeks away on friday.

This is the problem, i've been told by my solicitor not to apply for anymore credit until i receive a welcome pack from my mortgage company, or a welcome letter stating when my 1st payment will be taken. She said some lenders do additional checks before they release the funds.

When should i expect to receive this letter? I want to buy my sofa on finance so i have it for moving in!

powerwin

Don't know when you might receive the letter ... but are you sure you want to buy a sofa on finance? It's a very expensive way of buying a sofa. Do you not have any other chairs that you could make do with?

Rgds

xTheBearx

powerwin wrote: »

Don't know when you might receive the letter ... but are you sure you want to buy a sofa on finance? It's a very expensive way of buying a sofa. Do you not have any other chairs that you could make do with?

Rgds

DFS are doing 0% finance. I've bought other furniture and electrical goods with cash for moving in. It's just the sofa i need. Cant afford to buy it cash, saving up 10% for the deposit and furniture is hard work.

Yeah got seats to tide us over.

Farmerbob

The letter/pack will be sent the day your mortgage completes (the day they issue the funds). The credit check is a new one for me, it would do no harm to call the company and ask if they do run a check shortly before completion, and if they say no then you can go ahead and get the sofa.

dimbo61

Your solictor is asking you not to spend any more money before the purchase goes through!!!!
You only have a 10% deposit therefore you are taking a 90% LTV mortgage!
Asking the lender do you do another credit check before completion might give them an IDEA!
Sit on the floor, deck chairs, ask for quick delivery once you have bought the property or look on freecycle/ebay local papers ( why buy new and take on more debt)
Buying a new home has lots of unexpected costs in the first few months so take your time

xTheBearx

Farmerbob wrote: »

The letter/pack will be sent the day your mortgage completes (the day they issue the funds). The credit check is a new one for me, it would do no harm to call the company and ask if they do run a check shortly before completion, and if they say no then you can go ahead and get the sofa.

Thanks for the reply. The solicitor has sent me a letter requesting a cheque for X amount 8 days before i move in. Would that be the completion date or there abouts?

Farmerbob

The completion date will be within those 8 days (provided there are no issues with competing on time) if you are getting the keys on 1st July then I would say that the completion date would be then or the day or two before

xTheBearx

Farmerbob wrote: »

The completion date will be within those 8 days (provided there are no issues with competing on time) if you are getting the keys on 1st July then I would say that the completion date would be then or the day or two before

Many thanks.

jamesd

The solicitor is worried that you might lose the mortgage before completion due to making the mortgage unaffordable. So best to hold off if you can.

It's not even always affordability. My lender asked me for updated bank statements in the week between exchange and completion even though it was easy for me. Apparently an audit was being done by someone, maybe the FSA or maybe the lender itself.

Too big a deal to take a risk with.

hcb42

Farmerbob wrote: »

The completion date will be within those 8 days (provided there are no issues with competing on time) if you are getting the keys on 1st July then I would say that the completion date would be then or the day or two before

I have always got my keys on completion day - and handed over my old ones, of course.

Jenniefour

I imagine your solicitor is thinking of those rare occasions when the FSA do an audit on the mortgage to make sure the lender is complaint with regs - and they can do it at any stage in the process, including after exchange. Since it's been tight getting a mortgage, if such an audit were to take place you might find you have rendered your mortgage unaffordable - whether a loan is at 0% is irrelevant. Wait till you've completed before you get your sofa, your solicitor is giving you excellent advice.