Credit after exchange but before completion

rjenkins00

Hi,


I have just exchanged contracts on a new build due to complete in July. My mortgage is with Halifax but was offered £50k more in principle than I actually took out so repayments are far from breaking the bank.
I'm looking to get a car on Personal Hire Contract (24 months) as my current one is on its last legs (£9k credit). As I was offered £50k more than I even needed for my mortgage am I ok to take on this credit before completion? Will they check again and is it possible to ask/inform them they are ok with it to be on the safe side?


Thanks,

Supersy

Did you use a broker? Perhaps ask them if you did.

rjenkins00

Mortgage advisor is saying not to risk it in case they check. Can Halifax be contacted to check/ask beforehand?
Obviously if they where to credit check again before completion is will show a different story to before I exchanged but if its affordable to me I can't see the harm?

laidbackgjr

How long until you complete - you will probably be OK - but why risk it - contacting the Halifax and asking may well make them quite nervous and cause issues / delays.

If they did pull the mortgage - how would you feel being homeless but having a nice new car?

kingstreet

It isn't just about affordability, it's about how a change in your profile will affect your credit score and no, I don't mean Callexpifax's made-up number I mean the lender's based on the data it sources.

Standard advice has always been no applications for new credit between agreement in principle and completion. It's very, very good advice.

Because of income and LTV capping, you can find what looks like £50k of affordability 'headroom' is wiped out by a small commitment.

Just how much more do you want your shiny new car than your shiny new home? Can you get an en-suite in a hatchback?

Soworried2016

Hello,

I!!!8217;m hoping someone can offer some reassurance.

We!!!8217;ve had a mortgage offer from santander since May 2018, which has had three amendments due to administrative oversights by my solicitor. My guess was that the issue went to the underwriters at each point, but my credit report is not showing any searches by santander. Because of this I am worried that the credit check will be done at the time of completion, which is set for 8th Aug (we exchanged on 1st Aug).

The reason I am so worried is because in my haste to set up home insurance to comply with the stipulation in the offer, I mis-read what was covered in the policy and after taking the policy out via monthly instalments, I noticed that two of the requirements stipulated in the offer are not covered by the policy. I am going to cancel the policy and have found another which fully complies, but I!!!8217;m now worried that these two searches are going to show on my credit file and scupper my chances of completing on the mortgage.

I do hope that the bank would not react in this way, but having read other forums about the last minute withdrawal of offers, I just cannot reassure myself. Does anyone have any advice/experience/reassurance with this?

I am so sorry to jump on someone else!!!8217;s post, but I am so anxious. This purchase has almost fallen through three times and because we have exchanged I!!!8217;ve ended my current tenancy so anything that might cause this to fall through is filling me with absolute dread as we!!!8217;ll be homeless with a small child.

Thank you

kingstreet

Will hard searches be done?

if not, you have no issues.