Question about mortgage credit checks

Robinsonandi

Were about 1 week away from exchange. Since being accepted for a mortgage we have applied for a 0% credit card and used it to pay for fees and buy furniture.

Looking on the internet I have heard that mortgage companies credit check you again after exchange. If this is true, whats the possibility of the offer being withdrawn and us loosing our deposit (and possibly incurring massive costs from the vendor) We have the money to pay 70% of the credit card balance off. I was hoping to keep the cash for paying trades people.

So I guess my questions are:

1. Will this effect our credit score?
2. Will we be checked again? (The solicitor has my money and I thing the mortgage money ready for completion already
3. Can the lender pull out after we have exchanged contracts?
4. If they do, what will I loose?
5. If I pay the balance off today, will it be on my records in time?

Responses Appreciated

Regards A

dotdash79

How close was you affordability wise?

e.g. you could have borrowed £150k but you are only borrowing £100k?

Most cases they won't be a problem, but if you are close on affordability then if they audit the offer then you might be in a bit of trouble.

ACG

Why would you do that! Even if its not a problem, why would you apply for a credit card before you actually have your mortgage.

The lender may put a requirement on the mortgage offer that all debts are paid off prior to the mortgage being cleared. Different lenders and solicitors have different criteria on what they want and how they check.

Can you take any of the items back if required and get a refund? That would at least help to some extent.

Who is your lender?
How much are you borrowing from the lender?
How much is your income?
How much is the balance on the credit card?

Robinsonandi

We asked for 90% of 80,000 and got about 85%. We're moving as its half the price of renting but they don't seem to be interested about us being able to easily afford the payments. We've never missed any payments on anything however we have maxed out that credit card. I can pay it off today but the balance has been on for 2 months so it depends how much if a difference it will make. Should the solicitor make sure that the money's definitely in her account before exchanging? If it goes through does that mean were in the clear? Or can they ask for the loan monies back after a week or so?

Robinsonandi

We owe about £2000 on credit card. I thought most people would get a credit card when buying a house. Makes sense to me.

Robinsonandi

We're borrowing 68,000 from virgin money mortgages. income is 31,000. Credit card £2,000

ACG

Why did they reduce what they would lend?

Im guessing its not on affordability as your only looking for around 2x income.
Ive personally never used virgin money, so im not sure what their criteria i suspect you will be ok.

Robinsonandi

Student loan effected amount

ACG

How long is the term of the mortgage?

Sorry for the questions but for someone on £31k i would usually expect £100k mortgage to be possible without a second thought. So im just trying to get to the bottom of why they are offering a lot less.

Robinsonandi

30 years. Joint application me and my wife but I don't work, she's a teacher

Robinsonandi

I think what I'm worried about is the offer being pulled after exchange