Exchanged contracts, can I start spending?

buckolfc

Hi,

I have today exchanged contract on a new build house. This has been a long drawn out process. We waited 12 months to sell our old house, then with a lot of effort we sorted out our finances and credit scores, then finally got a mortgage agreed in principle. We paid a reservation fee, got the mortgage offer agreed, then that decision got pulled for audit. 4 Weeks later the offer was reinstated and now having waited nearly 6 more weeks, we have finally exchanged contracts:)

We are due to move in in October, so in the next few weeks we will need to order a sofa. This is the one big ticket item that I need to get on finance.

Is it a bad idea to get credit at this point? Surely this is a common thing?

The last thing I want to do is throw another spanner in the works but I also do not want to be sitting on the floor for 6 weeks.

Thanks.

betmunch

Do not take any new credit until completion.

It really is that simple.

Lenders can withdraw an offer at any time so don't give them any reason to do so

Goldiegirl

It's EXCEPTIONALLY rare for mortgage offers to be withdrawn after offer, and would probably only happen if it was found to be a fraud case.

However, there could be a circumstance where they needed to issue an amended offer and your sofa loan made such a difference to the figures, you were no longer eligible for the mortgage!

Again, there is a very, very, very small chance that this could happen.

But you can only be 100% sure that the mortgage is yours, when the funds are finally released.

So it's your call.

Sit on the floor of your house for 6 weeks, or risk not having a house at all.

I know what I would pick. When we moved to our first home, we used deck chairs for the first few months while we saved up for a sofa

kelpie35

borrow some chairs from family or friends.

don't borrow any more money till you are settled in your new home.

i hope you enjoy your new home and things go well for you.

PasturesNew

A few things from your post:

1] Need. Nobody needs a sofa.
2] Big ticket item. It's a sofa ... not even necessary really.
3] Finance. !!!!!! are you thinking? Cash is always king.

clarky_cat

If you have low interest or 0% credit card buy the sofa on there rather than risk another credit check .

It might be too early to order on as well, some of the big sofa companies want to deliver as soon as its ready so you might end up with a sofa and no-where to put it. We moved recently and bought one from IKEA, ordered it Sunday delivered Monday.

Alter_ego

Yes you can start spending, but not borrowing just yet.

DaftyDuck

PasturesNew wrote: »

A few things from your post:

1] Need. Nobody needs a sofa.
2] Big ticket item. It's a sofa ... not even necessary really.
3] Finance. !!!!!! are you thinking? Cash is always king.

But.... but.... there's a sale on at DFS!

OP: wait, look on Freecycle, sit on the floor, borrow, make do with a blow-up.

mattyprice4004

Our sofa was £25 from Gumtree.
If you'd rather sit on the floor for 6 weeks than spend £25 for a temporary solutuon, that's your choice

buckolfc

I appreciate the good advice and people taking the time to offer helpful advice. The obvious thing is do not borrow at this time.

Shame that you always get some smart !!!! comments though. If you have got nothing helpful to say, then don't say anything.

PasturesNew

mattyprice4004 wrote: »

Our sofa was £25 from Gumtree.

Mine was £45 .... it then cost me £40 to get a man/van to bring it 1 mile. So cheap sofas aren't always as cheap as they seem.... even a "free" one costs the man/van hire.

But .... under £100 for a sofa > "a big ticket item" on finance.