Mortgage approved...should we wait before applying for credit?

trakky14

I probably already know the answer to this question but...our mortgage has recently been approved and we are due to complete all being well in less than 4 weeks. The house we are buying as no flooring whatsoever so we were hoping to go to carpetright and get some flooring on 0% finance (we have no money in the budget for flooring as we were expecting to get it thrown in the price but the developer wouldn't have any of it)...would this be foolish before completion?

Thanks

TopperHarris

my broker advised me to not do anything that affects my credit file from application to completion.

amnblog

Do not apply for any credit before completion.

trakky14

Ok thank you! What about sticking it on the credit card? Also a bad idea?

gjheward91

I am in exactly the same position as you, and have been advised do not put anything or credit in anyway.
The lender have agreed to lend u XXX amount based on the figures you gave them at application, if you have credit they use that as a "debt" so would reduce the lend amount.
I am going to have to go and buy flooring the day I move in

chelseablue

I *think* you would be ok paying on an existing card, as long as that wouldn't take you up to the credit limit on it.


I hope Im right as when we applied for our mortgage in November I had a card balance of £398.


We complete on Friday and my card balance is now £1,172 after paying for a Dyson and the removal company on it

gjheward91

i had a balance of £697 on credit card when we applied, I paid this off just after application and have been informed that I can now go up to £697 but no more as they would reduce the amount they lend as I would have more debt

chelseablue

gjheward91 wrote: »

i had a balance of £697 on credit card when we applied, I paid this off just after application and have been informed that I can now go up to £697 but no more as they would reduce the amount they lend as I would have more debt

Who is your lender?

kingstreet

chelseablue wrote: »

I *think* you would be ok paying on an existing card, as long as that wouldn't take you up to the credit limit on it.


I hope Im right as when we applied for our mortgage in November I had a card balance of £398.


We complete on Friday and my card balance is now £1,172 after paying for a Dyson and the removal company on it

Halifax has a "live" system which can see increases in card debt and at different points in the process the case is re-scored automatically.

Halifax takes its data feed from Experian in the second week in each month.

We once had a query over a client's card debt increasing during the application process which turned out to be the Halifax valuation fee being taken on the credit card in question.

No new credit between AIP and completion is the usual mantra, but suggesting spending on an existing card can be just as damaging and should be discouraged.

chelseablue

kingstreet wrote: »

Halifax has a "live" system which can see increases in card debt and at different points in the process the case is re-scored automatically.

Halifax takes its data feed from Experian in the second week in each month.

We once had a query over a client's card debt increasing during the application process which turned out to be the Halifax valuation fee being taken on the credit card in question.

No new credit between AIP and completion is the usual mantra, but suggesting spending on an existing card can be just as damaging and should be discouraged.

Thank you! Ignore my advice OP and don't spend on credit until completion.


We complete on Friday and the lender hasn't ever come back to me about my card balance increasing.


If they ask me too tomorrow I can pay it off straight away. I only put those items on my card as they were large amounts and I get cashback

gjheward91

chelseablue wrote: »

Who is your lender?

Going through Melton Mowbray.
But when a lender agrees to give you X amount it is based on you incomings and outgoings and any debts, if you then add extra debt they would most likely reduce the amount they lend