Buying a car after exchange of contracts

Homebuyer21

My partner and I are about to buy a house together and wanted to know if buying a new car on finance after the mortgage has been offered and accepted and the contracts exchanged would this bring up any problems before we complete? I've rang a few people to ask but get mixed responses

eddddy

I believe that mortgage lenders sometimes do another credit check just before releasing funds for your completion. If they see increased borrowing, that might alarm them.

So it's safer to wait until you have completed.

G_M

Don't mess with your credit.

Homebuyer21

We're going to leave it until after the move. A car is defiantly not worth loosing a house!

Amanda_Cm

Don't do it! Wait to complete.

daz_79

A mortgage offer normally has the caviat that it can be withdrawn if one of a few changes occurs. A material change in your circumstances is a wide reaching condition which includes change in income since mortgage was offered, as well as increase in debt levels (which may mean affordability is no longer satisfactorily met). I would wait until completion as an 11th hour final check may be carried out.

anselld

Homebuyer21 wrote: »

I've rang a few people to ask but get mixed responses

Surely they only person thinking this is a good idea must be the car salesman.

hazyjo

I believe many credit agreements/cards, etc will be a case of 'computer says no' anyway so soon after applying for a mortgage. Best to leave a gap.

Comms69

Homebuyer21 wrote: »

My partner and I are about to buy a house together and wanted to know if buying a new car on finance after the mortgage has been offered and accepted and the contracts exchanged would this bring up any problems before we complete? I've rang a few people to ask but get mixed responses

Yes, no, maybe.


It's impossible to say. Personally I wouldn't chance it. You're committed to buying and if the mortgage is withdrawn you'd better start advertising your kidneys!

TBagpuss

I'd agree with the majority. Wait until you have completed. You might be fine - your lender might not do a final credit check, or your finacial position might be such that the added borrowing wouldn't be an issue if thye do, but on the other hand, they could do a check and then withdraw the offer, or reduce the amount they are willing to lend, if they feel that the extra borrowing means you don't fit their criteria any more.

When I last moved, the 1st buyer I had for my house pulled out at the last minute because they had bought furniture and appliances on credit and their lender did a check and withdrew the mortgage offer.

TBH, I'd suggest you want a few months anyway, if you can, so that you have moved and know how your finances are in the new place. there are often unexpected expenses when you move, and it will take a little while to work out what your outgoings are on a different property, so it might make sense to settle in before you take on a new financial commitment, if waiting is an option for you.

kingstreet

No applications for new credit between mortgage application and completion.

You can't put an ensuite in the back of an Astra.