Exchange to completion gap

Simba-ali34

Hello,

So I exchange contracts on Friday next week but the completion date is not until end of June. I am little bit nervous about this as I have to pay the 10% deposit on exchange and just hope nothing effects my approved mortgage deal in the mean time.

Can anyone offer any dos and donts such as using an existing credit card during this period? I don't want my credit rating to drop by using it or not using it then get credit checked by the mortgage lender and them withdrawing etc. Scary period!

Murray87

I was so scared between exchange and completion. We had about 3 months and I couldn't find any information to calm my nerves about it all!

Just remember not to take out any additional credit, nothing at all. I wouldn't even risk insurance quotes/comparison sites, utilities or anything until after completion.

We just used existing credit as normal, as that's what we declared on our mortgage application. We tend to do all of our spending on credit cards each month and clear on payday, so kept to this regular pattern (which the mortgage lender could see anyway from bank statements etc.) and we didn't have any problems.

We weren't credit checked again so I honestly can't guarantee what effect it could have had if we were, but this was the advice from our mortgage advisor.

Hope that helps? Just keep your circumstances as similar as they currently are, and don't spend any more than what you normally would on cards.

Simba-ali34

Thanks for the advice, I've stopped using my credit card incase they see that as negative. My partner also upgraded her phone which I spend 2 days making sure it didn't leave a credit check (they say it won't) it's all stress at the moment! It's only a small amount I'm borrowing so hopefully last minute checks might be more lenient lol

hazyjo

Simba-ali34 wrote: »

Thanks for the advice, I've stopped using my credit card incase they see that as negative.

So long as you pay it off, it can be seen as a good thing. You need to be able to be seen as being able to use credit and debt. How do they know you'll repay a mortgage if you've never made a regular payment towards a credit supplier. As Murray87 says, just keep the spending normal. Don't go out buying new sofas, TVs, white goods, etc on it!