Panicking

Bubbles28

Hi new to the board but have been reading unregistered for a while.

I'm really panicking about our house move with regards to the mortgage.

We got a final mortgage offer at the end of June with a condition that the credit card that had a balance gets paid off. That is fine we will do that.

My problem is my husband has done a cash advance on an existing credit card we had that had a zero balance.

We are only applying with him on the mortgage and he could of applied for about 75k more than we have done so affordability of that extra isn't a worry for us.

He has a fab credit score checked both experian and equifax. The card balance isn't showing on equifax yet. We did the experian when we were applying for the mortgage.

Our solicitor has told us we are due to complete on either the 30th of sept or the 3rd of Oct.

Will the extra debt accumulated on an existing card have a massive impact on the mortgage?
Will the bank pull out??
What can we do to resolve it other than pay it off (need sale to go through before that is possible)
Should we do another experian credit check or is that silly.

Full on panicking so much so I feel sick. Any help or advice much appreciated.

ACG

The balance is unlikely to be an issue as im assuming its not a huge amount?
The fact it was cash might be more of an issue.

When was the cash advance?

Its very very unlikely to get picked up, if it gets picked up and causes an issue big enough to stop the mortgage is very very slim.

I dont think anyone can give you th guarantees you probably want but realistically the chances of it having a big enough effect to prevent the mortgage completing (assuming it even gets picked up) is so remote I dont think I would be worrying about it.

Bubbles28

It was a transfer to his bank account of 4k

He took it to pay for furniture for the new house.

It was transferred at the end of July.

How big would it have to be to make a massive difference??

We are using the same mortgage provider that he has been with for 12 years never missed a payment.
We are putting 21k deposit on a 137k house and after completion the 4k will be the only debt we have other than the mortgage.
The mortgage payments will be less on the new house than we are paying now all bills including debts is just half his monthly wage. We still get left with 1k a month to live on. Do they take any of this into account??

kingstreet

£4,000 card balance is £200 a month out of affordability.

This was a reckless act. Why didn't he wait until completion?

We don't know what the implications might be, but I would run the Halifax affordability calculator to see if the mortgage remains affordable with this additional commitment.

If it is, contact whoever arranged this mortgage, explain what you've done and have them amend the application.

For anyone reading this - you SHOULD NOT alter your financial position during the processing of a mortgage application (that means between decision in principle and completion) without running the risk of having the amount you an borrow being reduced, or even a formal offer being withdrawn.

ACG

£4k! Thats a pretty big chunk of money. I was thinking £500 or something.

Is this £4k going to be cleared before the mortgage completes? If it gets picked up it could become an issue. Its not just the £4k, I dont think it helps being taken out as cash - surely this will cost you more than if you had paid on the credit card it may also look like you were short on money.

Bubbles28

It's an interest free card so hasn't cost anymore. The furniture wasn't bought in a shop. A neighbour was moving out and selling stuff hence cash.
If I do a halifax mortgage calculator we could still get 30k more than we are borrowing.
It won't be cleared before completion I'm thinking I'm just going to have to hope and pray they don't do a new credit check. The way my lucks been going recently they will.

If I did another credit check on experian to see if it has showed up there would that be a good idea or a shockingly bad one??

kingstreet

You don't do a credit check yourself, you simply order your credit file and this leaves no footprint.

Halifax gets updated credit data each month, about 11th/14th and whatever happens on your application, each time something changes, it re-scores.

The interest rate is irrelevant. £4,000 balance = £200 per month (5%) added to your outgoings.

Get on the phone tomorrow and have whoever is running this application enter this commitment now.

Bubbles28

I'll get him to ring. What will they do will the reevaluate the mortgage application?? Change the terms or just tell us where to go??

Is it worth risking them not doing another credit check, what happens if they withdraw the offer would they reconsider?? Would other banks even consider us if they did withdraw??
I could quite happily cry!! I could have pretty furniture and no house for it to go in.

P.s we didn't even think about the effect on the mortgage till afterwards.

kingstreet

You alter the information and re-submit it.

The system then decides on the outcome.

What happens determines where you go from there.

Annisele

Have you exchanged yet? If not, get on to your conveyancer and make sure that exchange doesn't happen until you've got this sorted.

Magicbeans_2

Would the bank withdraw the mortgage if affordability is still ok??

I wonder what happens if your car breaks and you need to either fix it or buy a new one do the banks not allow you to do this while your waiting? Even if it meant you couldn't go to work without it?!