Stupidly applied for credit before completion

domharrison

Hello all...I received my mortgage offer on a new build last month, am due to exchange contracts in 2 weeks, with a completion date in March (it's a new build that isn't completed yet).

Stupidly (I know) I was doing some shopping and opened an account with Studio 24 to get some bits for my house - not entirely realising the consequences applying for new credit before I've completed my mortgage deal would have.

I ordered £40 of goods, they have done the credit checks already and opened my account, and given me a £250 limit. I am now bricking it big time that Nationwide might withdraw their mortgage offer as they have seen that I have been applying for more credit in the meantime. I am in the process of trying to cancel the orders and shut my account, but it could take 2 weeks apparently (by which time I should have exchanged).

How likely is it Nationwide might run another search on my file? Or more importantly, how likely is it that the £250 credit account I have opened is going to result in them withdrawing their offer?

I'm majorly panicking now that after managing to get an offer, I've cocked it all up by being stupid

ACG

Its unlikely yo get picked up and at £40 or £250 its unlikely to make a difference one way or the other.

Closing it now will make no difference, the credit search has been done so you may as well just leave it as is.

domharrison

ACG wrote: »

Its unlikely yo get picked up and at £40 or £250 its unlikely to make a difference one way or the other.

Closing it now will make no difference, the credit search has been done so you may as well just leave it as is.

Thanks for the reply. So Nationwide can 'see' the *small* effect in affordability this credit account will have? So they would view this differently to if I had applied for (say) £2k of credit?

Is it worth reducing my credit limit with this company? Or will that have no effect either?

Sorry if I sound daft, I just don't know exactly what Nationwide can see when they 'check' my file.

ACG

Nationwide would prefer to see you using a smaller portion of your available credit - so reducing your limit wont help I wouldnt have thought.

There are 2 potential issues:
1) The credit search - they may or may not pick up on that, but its been done now. There is nothing you can do about it.
2) The balance/credit limit - if £40 makes an issue it is very tight anyway and its only £40 so you could pay it off. Again, they may not pick up on this as its only 2 weeks from application to completion.

domharrison

ACG wrote: »

Nationwide would prefer to see you using a smaller portion of your available credit - so reducing your limit wont help I wouldnt have thought.

There are 2 potential issues:
1) The credit search - they may or may not pick up on that, but its been done now. There is nothing you can do about it.
2) The balance/credit limit - if £40 makes an issue it is very tight anyway and its only £40 so you could pay it off. Again, they may not pick up on this as its only 2 weeks from application to completion.

Thanks again for the reply. It's actually two weeks until exchange only, but three months until completion in late March. So that leaves me with two and a half months where my deposit is on the line, hence me bricking it so much.

Obviously the £40 can/will be paid off as soon as I am asked for payment, I just don't know how much of an impact one credit search for £250 of credit will have. I'm hoping IF they do pick up on it, it is not a big enough deal for them to decide to withdraw _pale_

ACG

If it makes a big enough issue I would be very surprised.

Dont worry about it. They MAY do another credit check near completion but your 3 months down the line then anyway.

If I was a betting man, I would put my money on you being alright.

domharrison

ACG wrote: »

If it makes a big enough issue I would be very surprised.

Dont worry about it. They MAY do another credit check near completion but your 3 months down the line then anyway.

If I was a betting man, I would put my money on you being alright.

Thanks, put my mind at ease slightly. I shall update in 3 months when I'll hopefully have some keys in my hand!

ACG

Im sure you will be fine.

Teaandtoast0124

Hi dom sent you a private message. Thanks

domharrison

So this account has now been settled, and the balance is zero. My available credit is £250. Am i better off just leaving as is? Or closing the account? Or reducing the limit even? Thanks.