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Will applying for a new credit card effect my approved mortgage
minority
Posts: 171 Forumite
hi,
Title pretty much says it all. Was planning on getting a tesco credit card to buy sofa, table etc on it and keep the money we have in our offset but I am wondering if applying for it will effect my approved mortgage as we do not complete until the 5th of April.
Title pretty much says it all. Was planning on getting a tesco credit card to buy sofa, table etc on it and keep the money we have in our offset but I am wondering if applying for it will effect my approved mortgage as we do not complete until the 5th of April.
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Comments
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If you've not exchanged yet, it's not advisable to take on any credit. They could well pull in your application for a final check before exchanging.
Another point - do you have the money to pay this credit card off, or is this a way of borrowing money for all you need? Don't underestimate how hard it is to find that extra money each month! I'm sure most of us have learnt the hard way!
Plenty of 2nd hand stuff out there for virtually nowt for a first timer. Saving for things before you buy them rather than after is usually the best way to do it...
Jx2024 wins: *must start comping again!*0 -
1. Don't apply for more credit until you have completedhi,
Title pretty much says it all. Was planning on getting a tesco credit card to buy sofa, table etc on it and keep the money we have in our offset but I am wondering if applying for it will effect my approved mortgage as we do not complete until the 5th of April.
2. Unless the tesco has a very low rate, then it is financially foolish to borrow on a card to keep cash in an offset.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
^^^^^^^^^^^^^^^
What he said!
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
BE CAREFUL!!!If you've not exchanged yet, it's not advisable to take on any credit. They could well pull in your application for a final check before exchanging.
The worst thing you could do, I would think, is apply for credit AFTER exchanging but before completion.
Once exchanged then you've committed to buying the place. If your mortgage gets pulled once that's happened then you are in serious trouble.
As to whether it affects the mortgage, what do you think?
Imagine there's a guy in your local pub who you see from time to time, enough to trust him.
He asks you to lend him a tenner. You're not sure so ask if he owes anyone else any money. He says no and you believe him, so you agree.
He says thanks, I'll be back in 5 minutes.
While he's gone he goes and borrows money from someone at the other end of the bar.
Are you still going to lend him the tenner?0 -
I agree. Exchange has no significance for the mortgage lender, which will pull your offer just as readily after exchange, as it would before. Exchange confers no obligation on the lender to lend the money it has offered.JimmyTheWig wrote: »The worst thing you could do, I would think, is apply for credit AFTER exchanging but before completionI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Don't give them ANY reason to turn the mortage down, they're just looking for ways to avoid lending at the minute.0
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I am in similar situation. I got promise during December, when I got offer accepted I, at end of Dec, took out a Homebase card to get furniture. I got my "Mortgage Offer" last month. I have just this minute paid off the Homebase card and zero'ed my Credit card just in case!
I sent off the signed Transfer and Contract today, did I do the right thing? I had no idea I was'nt allowed any sort of credit! I have plenty of "spare" savings so its all paid for now! Should clear in next couple of days.0 -
It's not that you're "not allowed", m0bov, just that the mortgage company may see it as a sign that you need to borrow money to cope with your lifestyle in which case they may rethink your mortgage.
Depends greatly on how close to the edge you are. If you're only looking to borrow, say, 2x your salary on your mortgage and have good credit history then I wouldn't have thought a new credit card would cause many problems. If you're borrowing a large multiple of your salary with a few bad marks on your credit file then a new credit card might make all the difference.0 -
Its x3.8 of my salary. I've paid it off now, it was for furniture and it would have been nice to spread the cost over the year but its paid for now anyway. :j
My credit scare is 939 (good)0 -
Freecycle. Second hand. Charity shops.
Don't borrow money for furniture.0
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