Credit card before lender releases mortgage funds?

edited 30 November -1 at 1:00AM in Credit Cards
5 replies 801 views
malihatmalihat Forumite
133 Posts
Part of the Furniture 100 Posts Combo Breaker
edited 30 November -1 at 1:00AM in Credit Cards
DH is a FTB, buying a flat for us to live in. He's already exchanged, and completion will happen on June 18th. He wants to get a 0% credit card before we complete so that we can buy furniture, etc and then pay it off over the 0% period. He's checked his eligibility using the eligibility calculator and there is a 90% chance of him getting accepted for several, including M&S, Lloyds and Halifax.

Should he go ahead and apply so that if accepted, the card arrives in time for us to buy the things we will need, or should he wait till after the lender (Natwest) releases the mortgage funds? Is there any chance natwest won't release the funds if he gets a card right now? We could hold off on spending till the mortgage comes through, but should he wait to apply as well? He has no other debt, just a Capital one credit card with a limit of £2000 that is paid off in full every month.
Sometimes our light goes out but is blown into flame by another human being. Each of us owes deepest thanks to those who have rekindled this light.
-Albert Schweitzer

Replies

  • TixyTixy Forumite
    31.5K Posts
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    It is always advised to hold off on any applications at all until after completion.

    Lenders typically do search again before completion. Its probably a tiny tiny chance of a search making a difference, but not really worth the risk.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • grumblergrumbler Forumite
    54.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    malihat wrote: »
    Should he go ahead and apply so that if accepted, the card arrives in time for us to buy the things we will need, or should he wait till after the lender (Natwest) releases the mortgage funds?
    The latter.
    We are born naked, wet and hungry...Then things get worse. :(

    .withdrawal, NOT withdrawel ..bear with me, NOT bare with me
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  • citricsquidcitricsquid Forumite
    1.2K Posts
    There is no reason to risk it. Even if there's just a 5% chance of this causing problems, those problems will have significant financial impact, far less is the impact of being without furniture for an extra week. Don't risk it.
  • Scotland2021Scotland2021 Forumite
    995 Posts
    Sixth Anniversary 500 Posts Name Dropper
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    You say 'he' is a FTB - are you not on the mortgage? If you aren't, you could try for the card if you are eligible?

    Or if it's 90% chance for him there's a good chance it'll be an 'instant accept' - he can even apply on completion day and get the card a few days later. I know you'll have a lot to think about on 18/6, but if you're desperate it's an option :)
    Used to work in Underwriting. Only the lender can give a definitive answer to queries
  • malihatmalihat Forumite
    133 Posts
    Part of the Furniture 100 Posts Combo Breaker
    Thanks for all the replies. He'll just apply after completion. Don't want to risk it.
    You say 'he' is a FTB - are you not on the mortgage? If you aren't, you could try for the card if you are eligible?

    I'm a home-maker so don't think I'll get one.
    Sometimes our light goes out but is blown into flame by another human being. Each of us owes deepest thanks to those who have rekindled this light.
    -Albert Schweitzer
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