Between exchange and completion: utility bills and CONTRACTS

merlin05

Hi there,

I'm currently between exchange and completion (completing in just over a week), and I'm in the process of arranging removals, cancelling/moving utility bills. I called Virgin Media to move my broadband/TV/phone account to the new property and the sales lady offered me an 18 month contract (about £30 pm). I've taken this option, with installation starting two days after we move in, however I'm now really worried in case the mortgage lender takes a dim view of this.

Does this new Virgin Media contract count as a credit committment?

Should I cancel it? (I can still cancel the contract as it only starts on the day of installation, which is when we move in)

Does that fact that it only starts on the day of installation mean that it doesn't matter - i.e. it won't appear on any credit reports or will the fact the contract is "looming" raise a red flag?

This is all a bit nerve-wracking to be honest, with lenders judging us on criteria which aren't 100% transparent.

Thank you.

AnnieO1234

Were you paying money to Virgin media before this? Hence no "extra credit" and it's obvious that you're simply moving utilities etc. stop panicking! X

merlin05

AnnieO1234 wrote: »

Were you paying money to Virgin media before this? Hence no "extra credit" and it's obvious that you're simply moving utilities etc. stop panicking! X

Thanks for the fast reply.

I was paying money to Virgin Media before this, however I was outside of the contract period (i.e. I'd been with them for 4 years and so I was allowed to cancel whenever I liked). By moving the utility *and* moving to a contract with Virgin Media it might be classed as a credit committment (albeit a relatively small one), so this is what I'm worried about.

suziqqq

As a matter of interest how long did Virgin say it would take to install in your new house

bryanb

Once you exchange the lender has committed the mortgage money.

merlin05

suziqqq wrote: »

As a matter of interest how long did Virgin say it would take to install in your new house

Well the vendor of the flat currently uses VM so they said it would be very very fast. From experience it takes the engineer between 30 minutes and 2 hours to set it up (they're just plugging things in and making sure everything works properly).

dgtazzman

I took out a Virgin contract between exchange and completion, no issues for me with the mortgage. I think it's kinda obvious people that are moving house are going to want this kind of stuff...

merlin05

bryanb wrote: »

Once you exchange the lender has committed the mortgage money.

Really, is this true? I've read horror stories on here about lenders pulling out on the day of completion etc... Even on the offer letter it says "Nationwide have the right to withdraw this offer if (i) there is a material change in your financial or personal circumstances or in the value of the property..."

Herbalus

merlin05 wrote: »

Really, is this true? I've read horror stories on here about lenders pulling out on the day of completion etc... Even on the offer letter it says "Nationwide have the right to withdraw this offer if (i) there is a material change in your financial or personal circumstances or in the value of the property..."

Do you think a £30/month contract with Virgin Media really is a material change in your financial circumstances?

I've read horror stories as well, but there's usually a good reason. Like the stories about CCJs getting wrongly attributed to people's credit files. Then you learn that two people called A B Jones live in the same house and were born on the same day, and the CCJ actually belongs to one of them.

merlin05

Herbalus wrote: »

Do you think a £30/month contract with Virgin Media really is a material change in your financial circumstances?

Ok thank you. I think I'm just being overly cautious about this. I actually called VM and they said that I can cancel the broadband contract up until a day before the installation, which is a day or two after completion of the mortgage so I don't think this will be an issue (if the lender doesn't like the contract for some reason I can get rid of it for them).

davidmcn

bryanb wrote: »

Once you exchange the lender has committed the mortgage money.

merlin05 wrote: »

Really, is this true?

No, it isn't. The lender doesn't even know when you exchange.