What details to use when applying?

holyzombiejesus

I'm in the process of buying a house (should be getting the keys on Friday) and we are going to apply for the Halifax 20 month 0% credit card so we can get some of the stuff we need.

The repayments won't be a problem and the eligibility checker on here states I have a 90% chance of getting it. What I'm wondering about is whether I should apply now, before the sale goes through, and (truthfully) state that I am a renter and have lived in the property for 11+ years or wait for the completion of the mortgage and put that I'm a home owner but have lived in the present property for zero months.

I've been told that mortgage lenders don't like to see borrowers trying to get hold of extra money before completion and also that they might well do a final check just before the mortgage is all signed off; I obviously don't want to jeopardise this. I'd prefer to be honest and wait for the completion of the mortgage before applying but won't the fact that I have only just moved in and have no bills etc from that property count against me?

We will actually still have our current rented accom for a few weeks until we move in to our house, so could I complete the mortgage but state on the CC application that I am renting and have lived here for 11+ years, even though I will also own another house at that stage?

Swampy3k

either way your credit rating may take a dunt, this may most likely be due to :

taking out a new mortgage and/or moving house (and living there for less than 3 years)

also remember that you will have been credit file checked for your mortgage (as you say it may happen again) and you will get credit file checked for a credit card too, try and avoid having too many checks in such a close period of time as it may seriously damage your credit score. if you can why not just buy the essentials and wait a few months before applying for a CC? Hope this helps

InsideInsurance

You have to declare what your current address is, if you arent living at the rented accommodation then to say you are would be fraud and probably not the best start to a new banking relationship.

Given the ever present news of lower mortgage approval rates etc then I suspect most wouldnt do anything to risk an 11th hour change of mind from the lender that may leave you committed to buy a house with no funds to do so

holyzombiejesus

InsideInsurance wrote: »

You have to declare what your current address is, if you arent living at the rented accommodation then to say you are would be fraud and probably not the best start to a new banking relationship.

We are still going to be living in the rented address for a few weeks yet , certainly for the next fortnight which is when I would be applying. So, if having bought the house but continuing to live short-term in the rented flat, would we still be committing fraud if we put the rented accom down as our status?

We can't afford to buy the things we need outright and a CC was always going to be part of the plan. As I said, the repayments are not going to be a problem as we can easily spare £100 a month. It seems odd that at a time when I imagine people may need money the most (moving in to a new house) their credit rating is at its most vulnerable.

InsideInsurance

holyzombiejesus wrote: »

I imagine people may need money the most (moving in to a new house) their credit rating is at its most vulnerable.

Because they are making big changes.

Credit providers are by nature risk adverse and thus dont like change. They'd rather see you prove yourself being able to pay mortgage, settle down in your new house etc and then when its become the status quo then they will be happy to lend again.

Sub prime lenders can afford to be more gun-ho with their lending decisions because they have 40% APRs and so can afford to make a we mistakes along the way.

bouicca21

I've just moved and I've just applied for that 20 month card. Whilst it looks ridiculous to put 1 month on the 'how long have you been at this address' question, it does immediately ask for previous address and length of time there. It wants 3 years worth of addresses.

If your credit is generally good, then I'd just wait until you are in your new place. Presumably like me you will be buying furniture and accessories for the new place. It will take you a while to decide what to get (you may think you already know, but you may well change your mind once you are actually in the new house) so why waste any of those 20 months?

YorkshireBoy

holyzombiejesus wrote: »

We are still going to be living in the rented address for a few weeks yet , certainly for the next fortnight which is when I would be applying.

The Halifax card's online application form asks for "residential status".

For the next fortnight at least you will remain 'resident' at the rented accommodation, as you have done for the last 11+ years.

It's as simple as that really!