Taken out credit card after mortgage application...

Knollys

So, first time buyers, we completed our mortgage application in full and received the offer paperwork on Monday, GREAT news.

Then we took out £6000 on a credit card which we need to help with the purchase.

I've just read the following from my conveyancer:

Please be aware that lenders are carrying out rolling credit checks after issue of the mortgage
offer. If they decide that any of the buyer’s financial position has changed they can withdraw their
offer, even after exchange of contracts. Please be aware especially if you are intending on
purchasing large items on credit prior to completion.

Slightly worried now....we're supposed to be exchanging next week and completing around 23rd Nov.

Should I stick and not cancel the card, or cancel the card and take it out after completion?

sammyjammy

As you've discovered its a big no no. If it were me I would cancel the card but you take the risk that the credit reference agencies and the credit card company update their records promptly. You'll just have to hope for the best.

What did you need £6000 for?

Knollys

The money is for fees, etc required to be paid on or before completion.

The lender is skipton if that makes a difference. We've also gone through a broker.

Has this come up here before?

Found it difficult finding any relevant threads on this

Knollys

surely we can't be the only couple that have had to make up a shortfall (when buying a house) by getting another loan...

bigmatt1174

It can affect the offer - they can withdraw if they wish to before completion. I would have ran this past your broker as he will know how close you are to your borrowing capacity and how much this borrowing will reduce your affordability and overall borrowing capacity.

Give your broker a bell and see what he says.

kingstreet

Any borrower posting on here is advised not to apply for new credit from the point of making an application until after completion takes place.

Cancelling it is pointless. The search and establishment of the account will be there to be picked up by the lender if it does another search.

Fingers crossed no further checks are done on this application.

DannyboyMidlands

Knollys wrote: »

surely we can't be the only couple that have had to make up a shortfall (when buying a house) by getting another loan...

But you are effectively borrowing £6k of your deposit on credit cards. And doing it sneakilly post-application.

I would think that most people save up the money for fees, ie save up a lump of money and then apportion it to deposit, fees, rennovations........ It doesn't really make sense to say that you don't have enough for one of those. You have what you have.

mrginge

Whats done is done. Going to be squeaky bum time for a few weeks by the sounds of things.
I hope you haven't actually lied to your lender about planning to do this or you might find it somewhat more difficult to get another mortgage if they find out, withdraw and blacklist you.
Fingers crossed!

Knollys

thanks for the replies.

leveller2911

kingstreet wrote: »

Any borrower posting on here is advised not to apply for new credit from the point of making an application until after completion takes place.

Cancelling it is pointless. The search and establishment of the account will be there to be picked up by the lender if it does another search.

Fingers crossed no further checks are done on this application.

Is that really your thoughts Kingstreet?, you would rather the OP obtained a mortgage based the fact that they fall short of having enough deposit/money for fees etc and have resorted to the credit card for the £6k shortfall?.Surely you would hope further searches are carried out and any mortgage offer based on the extra £6k of debt..................

Or am I barking up the wrong tree?

Or are you just being polite?........:D

kingstreet

leveller,

I play every thread on here with a straight bat.

I don't judge. Sometimes I feel like screaming and throwing insults around because it's often difficult to cope with the stupidity which arises every day - not necessarily today though, I'd like to add.

The OP realises he's done something stupid and will now worry for weeks. He could quite easily have left it until completion to do this but has made a mistake.

I may not agree with the actions of certain individuals, but I'm not going to type a churlish post suggesting I hope they get caught. That would be petty and spiteful, and I'm neither.