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Advice needed ASAP

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Hopefully someone can help.

I've recently gone through a mortgage application for a 5% mortgage. Everything was approved and the bank took the money for the searches to complete. At this point I instructing a solicitor to start the process of drawing up the contracts for the sale of my property and purchasing my new property.

I purchased a credit card about ten days before this application in order to have as a form of payment for things that needed to be paid up front ie mortgage surveys, solicitors surveys as I didn't have the disposable income to pay for this at the time.

I have now three weeks later had a phone call from the bank saying there has been a problem with the application and they no longer may not be able to offer me the 5% deposit scheme. It's been sent to the underwriters to look at but it may be still okay to get the 5% but it's not clear yet.

Now I no the credit card may have affected this but will this stop the underwriters giving me the 5% deposit and 95% mortagage. I can afford the monthly mortgage repayments with ease and I always make payments on time and never miss any payments.

Any advice would be greatly appreciated.
«1

Comments

  • tvfreek
    tvfreek Posts: 142 Forumite
    Was it the credit card she said the problem was with
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Leedsfc
    Leedsfc Posts: 5 Forumite
    Well she said a form of finance has popped up that the underwriters need to check. I also recently changed my car over with ford after the mortgage application was accepted and processed.

    However, I already declared to them that I pay finance for a car with ford and how much my payments were per month. The payments have gone up 30 pound but as I said still make every payment and can easily afford this.

    So in total I suppose you could say there are two forms of finance the car and the credit card. Even though the car technically was just switching over one finance agreement for another.
  • Annisele
    Annisele Posts: 4,835 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I think it's impossible to know until the underwriters come back.

    However, if you were tight on affordability to start with, then either or both of the extra £30 a month on the car agreement and the new credit card might be a serious problem.
  • Leedsfc
    Leedsfc Posts: 5 Forumite
    We weren't tight on affordability. We were accepted as an A for a 5% deposit. I believe it was just flagged up as it was new finance
  • Leedsfc wrote: »
    We weren't tight on affordability. We were accepted as an A for a 5% deposit. I believe it was just flagged up as it was new finance

    If you're not tight on affordability why are you using a credit card to pay for £xxx fees and using a 5% deposit scheme? That doesn't match up and that is most likely what has the lender worried.
  • Leedsfc
    Leedsfc Posts: 5 Forumite
    I had a credit card as I had to pay 350 bank surveys and also solicitors surveys up front which account for nearly 800 pound. I didn't have that to hand at that point until I got paid so I used the credit card to pay for it for the time being.

    All my money in terms of fees and deposit is tied up in the sale of my property
  • tvfreek
    tvfreek Posts: 142 Forumite
    I would suggest as the car finance was a switch over this shouldn't cause a greater risk. The card application 10 days before the mortgage is not helpful but not a reason to decline. It wasn't an undisclosed committment after all.

    Should be Ok if affordability remains the same as before..
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Not one person had said to you on this thread never ever take on or adjust credit mid flow for a mortgage app as the AIP's are agreed subject to NO changes to your circumstances.

    We are in 2014, computer systems are highly sophisticated and people share data.

    Silly you if it declines.
  • kingstreet
    kingstreet Posts: 39,254 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    I would have advised against two credit searches during the application process for a 95% mortgage.

    You may have inadvertently tipped your credit score down to the point where 10% deposit is required.

    It's not about affordability. This may have no impact, particularly if the impact is negligible. However, recent searches can impact lender credit scores,
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Leedsfc
    Leedsfc Posts: 5 Forumite
    Is there anything I can do to rectify this?
This discussion has been closed.
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