Mortgage Completion and further credit

jamesmcalister

I have a question regarding the use of credit and the timing of that in regards to a mortgage application. We have had a successful mortgage application and have received an offer and we are now progressing thing with our solicitor.

I am looking at taking a personal loan of around £5k for a car purchase and then using one or two 0% credit cards to buy around £5k worth of furniture since we are first time buyers.

I also want to use some of our savings since the amount we put on the mortgage application in our savings is not all for the deposit, stamp duty and legal fees etc.

I spoke to someone at the lender to ask them when I could possibly do all this - they said that any kind of credit would appear on your credit file and could impact the mortgage offer - which is fair enough and good advice.

But once we have completed the mortgage and got the keys, are we able to use what credit we want within normal reasonable bounds? The lender said that in terms of their affordability they would only have granted another £5k of affordability for the mortgage and so we were close to our limit of what we could afford. However, it is not the case that if we borrow more than £5k they will be checking that and if we go over that it will be a problem?

However I would think that once we complete the mortgage, as long as we would be comfortably keeping up all our payments on the mortgage and any other debts, the lender won't bother to look at our affordability? I assume as long as payments are comfortably made on time (which they will be) they wouldn't or couldn't withdraw the mortgage?

Sorry if this is a silly question, I just want to make sure it is likely not the case that even after we have the keys that the lender will be monitoring how much debt we have and could withdraw the mortgage. We would be able to afford all the relevant payments so I don't think there would be a problem. Even if we went over their affordability threshold, we have the mortgage completed and we can afford all the credit.

Thanks

Noobie2011

Once you have completed on the house then any checks by the lender are done and it is really in your own hands to manage your affordability.

The only reason you may hit issues is if you take too much credit and then miss a mortgage payment and could in essence go into default.

But generally your next hurdle will be re-mortgage time when you will want to be in the best position to get a good deal