Loan or balance transfer after completion?

sturgeon

I understand that there might be issues taking out credit whilst in the process of applying for the mortgage, however I was wondering if there are any issues taking out a loan or a balance transfer once completion has taken place? even a day or two after?

It would be to buy furniture etc. Surely this is normal practice although in theory it could impact ability to repay the newly setup mortgage (if one went wild and ordered £50k of designer furniture?)

sturgeon

By balance transfer I mean take advantage of an offer my credit card supplier has, to make a 0% transfer to my bank account.

AnotherJoe

Once completion has happened the lender has paid the money due and they no longer have any hold over you in the context* you are worrying about , they can't rescind their mortgage offer and take their money back because you decide to spend £50k on a Chippendale dining table.

*(To forestall any pedants here, of course there are things you could have done, such as a fraudulent application, that can cause them to force the closure of the loan. )

ACG

AnotherJoe wrote: »

Once completion has happened the lender has paid the money due and they no longer have any hold over you in the context* you are worrying about , they can't rescind their mortgage offer and take their money back because you decide to spend £50k on a Chippendale dining table.

*(To forestall any pedants here, of course there are things you could have done, such as a fraudulent application, that can cause them to force the closure of the loan. )

Bit of a contradiction there.

The lender can recall the loan on the basis that you lied on your application. One of the questions asked on an application is something along the lines of "Do you expect any changes to your income or expenditure in the forseable future?" - clearly if you are planning on taking out a loan or credit card before you have completed you should be answering that as yes.

The reality however is that once you complete, assuming you keep up your repayments it is very unlikely anything will happen. That does not mean it will not or does not happen (I have no idea whether or not it does).

AnotherJoe

ACG wrote: »

Bit of a contradiction there.

The lender can recall the loan on the basis that you lied on your application. One of the questions asked on an application is something along the lines of "Do you expect any changes to your income or expenditure in the forseable future?" - clearly if you are planning on taking out a loan or credit card before you have completed you should be answering that as yes.

The reality however is that once you complete, assuming you keep up your repayments it is very unlikely anything will happen. That does not mean it will not or does not happen (I have no idea whether or not it does).

Id like to see that question. It must surely have words about "significant changes" or similar because obviously everyone's expenditure changes every month so everyone would be lying if they said " no" to a question posed as you've put it. It would also make it impossible for anyone with a mortgage to buy an extra latte let alone take out a loan no matter how small.

ACG

I have probably missed off a key word there.

However I would argue if someone is looking to take out a loan to pay for whatever it is they want, then it is significant.