Applying for loan during house purchase?

chib

Hi,

I'm currently going through the purchase of a house with Halifax, today I received my Mortgage Offer and my moving in date is the end of February.

I was offered up to 102K mortgage however I've only borrowed 75K. When I move in, I'll have about £2K in savings that I plan to use to decorate and fit new carpets - I see these as essential as current owners are smokers and I'm not.

One thing I'd love to do is fit a new kitchen as the house has a 20+ year old council kitchen fitted and looks dated. Once in the house I'll have about £300 a month disposable income, I was thinking of ordering a kitchen on finance via B&Q or IKEA (Can fit myself) and getting it on credit over 2/3 years.

I'd like to arrange the kitchen over the christmas break (Max, £2K on finance) but would this impact the mortgage offer? The advisor at the bank didn't think so.

Interested in others thoughts.

Regards,
Chib.

mrginge

Do not apply for any additional credit until you have completed.

Yorkie1

The bank advisor cannot tell whether your mortgage will be selected for re-checking at any point before completion (even between exchange and completion) - and what the result would be if you were re-checked.

It's not worth the risk.

vjacx

Wait for the new year sales?

ValHaller

New carpets are in reality not essential. You also say you would love a new kitchen, but you don't say it is essential.

If you are going to take any sort of finance, increase your mortgage request, unless your LTV is too high. And if your LTV is high, DON'T take a loan - high LTV mortgages are most at risk of going delinquent. So you will be more closely scrutinised and more likely to be audited late in the process.

If you have maxed out the LTV and cannot increase the mortgage, wait till you have settled in and can be sure of your monthly surplus, by which time you will have saved enough for a kitchen.

somethingcorporate

Patience is a virtue. It would be a shame to get the loan and then get declined on the mortgage as a result.

Just not worthy of taking the risk.

little_miss_muppet_face

Would you also not need access to the property to allow them into measure up ? I would wait.

( im not sure you can get a 2k kitchen with finance anyway. I think the fitting is more than that with B&Q)

StuC75

Halifax Can & Do audit applications prior to completion to ensure meet criteria (afterall taking a loan before completion could be seen as a source of the deposit).. So its best waiting until you are in the place first,, then nothing can be done...

leccyblue

Issues of finance aside, surely it's not sensible to order a kitchen yet, when your move date isn't until end of February? What if the sale falls through? If you have exchanged contracts then clearly the risk of this is minimal - but not impossible!

leccyblue

Also, on another point - when the time does come - have a look at Wren Kitchens. We fitted one of these 2 years ago - great price, much cheaper than B&Q etc and the units come ready assembled, saving the hassle of flat pack.

ethank

Your house purchase can fall through until exchange (and some people even fail to complete)

Whilst I know you want to have a perfect home on your first day, I would not be ordering anything until I have exchanged contracts at the very least!