Is it safe to apply for a new credit card at this stage of mortgage application

SouthernGuy

Dear all, I'm after some advice.

I'm fully aware that you shouldn't apply for any credit during a mortgage application but am wondering what your thoughts are on my scenario.

My mortgage with Nationwide has now been agreed in priniciple and also agreed subject to valuation which is taking place next Weds (11th).

They obvviously know about all of my existing borrowing including on a balance on a credit card of £5500.
My issue is that the interest free period on that card has just ended so I want to shift it to a different interest free card whilst I finish clearing it (it was £8000).

Do you reckon it's safe to apply for another card now and move it or should I just swallow the £80 monthly interest until completion and try to move it then?

Any thoughts and advice is much appreciated.

Many thanks

ACG

2 things - check the offer. Some offers stipulate the borrowing is paid off (even if you have said it will remain).

The other - is it worth risking losing the house for £80-160 in interest?

SouthernGuy

Thanks for the reply.

The balance on that card is not expected to be cleared for the mortgage.

I agree with your point about whether it's worth loosing the house over £80-£160 but on the flip side will it not be more difficult to get a new credit card having just moved to a new house?

My mortgage advisor thinks it shouldn't be a problem and that if it did get highlighted it would be an easy explanation of wanting to move a balance to interest free but I just don't want to mess things up.

Many thanks

ACG

My theory is that applying for credit whilst your waiting on a Mortgage is pretty daft.

Nobody can give you a cast iron answer and so because of that you run the risk of the mortgage offer then being pulled. If its worth the risk, go for it. If its not worth the risk hold off.

SouthernGuy

Thank you for your advice.

I've decided to take your advice and hold off until completion as I don't believe it's worth loosing the offer/house over and it would just be another thing to worry about.

Many thanks

Thrugelmir

SouthernGuy wrote: »

My mortgage with Nationwide has now been agreed in priniciple and also agreed subject to valuation which is taking place next Weds (11th).

Until you receive a mortgage offer then nothing is agreed........

Eve1975

They will carry out more credit checks on you. I had one check back in July when I first applied for a mortgage with Nationwide and they have just done another one on me last week.

So I would not apply for any more credit cards.

dgtazzman

Not exactly the same, but I just switched some credit cards around last month (applied for 2 new ones, closed one old one) and am currently applying for a mortgage via a financial adviser. They have been busy with Nationwide and they did the credit checks on Saturday, came back as an all clear, not even the slightest query about the credit cards. They're just waiting to hear back from NW's underwriter to check if they're ok with my salary being paid out in EURO as I work for a Dutch company, that was the only slight issue encountered.

I think as long as your history shows you run your credit responsibly, 1 credit card application probably won't do much harm...

kingstreet

No new credit between mortgage application and completion.

No-one can guarantee a search and a new credit agreement won't turn an accept into a decline.