New Credit Card before final approval of additional mortgage borrowing

RichBromley

Hello,

I'm taking out some additional borrowing on a Nationwide mortgage for furniture, decorating etc. (approx £15k) and got pre-approval.

With this additional mortgage borrowing the LTV ratio is approx 45%.

It hasn't had final sign off from the underwriter yet- and since the process started I took out a new credit card to purchase some of the furniture to ensure delivery for Christmas. This takes my ratio to 35% of available credit on my cards- 30% when I make a payment on Monday.

I've just read that they're likely to do another credit check. Is this going to cause a problem with the underwriter as I have a new credit card and my credit card debt has increased by £4k since I started the mortgage process? I suspect it will at least delay the process.

Any insight welcome....

Thrugelmir

Any new application will result in a full credit check. Lenders have to have current information on which to base their decision. To an outsider £15k could appear to be a lot of money for simply decorating and furniture.

RichBromley

Thanks for replying. Approx 6k is to pay off existing debt and garden works another 2k- which I declared at application. A full credit check was done at pre- approval stage as it shows on my credit report.