To buy on finance or not?

Ian_875

Bit of a catchall question here, so I'll try and be concise.

• My wife and I are looking at applying for a mortgage next year (probably May/June time)
• Currently all our bills go out of our joint account, which we both put a chunk of money into each month. With the exception of the tenancy agreement and the waterbill, everything else is in my name
• I have a credit card which I pay off in full each month (I only use it for petrol)
• I took out a £7k loan about 5 years ago to buy a car. I paid it off at the agreed rate for 3 years before paying the final balance off with a lump sum

So, I have a good credit history.

My wife however, had never had any credit of any kind.

The reason I'm posting is we're buying a new mattress and will be spending around £600. We have the cash to buy this outright, but the store are offing 0% finance on it.

Should be wife get this in her name over say 6 months (we'd just put the cash into her account and let it drip out each month), or should be we pay outright.

Basically, which would be worse? Applying for a mortgage with my wife having no credit history, or applying for mortgage with a recently settled finance agreement?

[Deleted User]

Pay cash for the thing and get your wife to apply for a credit card to use and clear in full each month.

jimbo26

or do both. When mortgage time comes she will have a settled credit agreement and a bit of good credit card history.

JimmyTheWig

If it's honestly 0% (i.e. could you get a better deal if you paid outright?) and it will be paid off before you are applying for mortgages (sounds like it will) then I'd say go for the finance.
I'd also say go with the credit card suggestion.

Lauralou79

My partner had no real credit history when we applied for a mortgage. He hates credit and would rather save. Obviously a mortgage is a different league

Anyway we had no problems. We went with who we both banked with and had a high deposit (over 50%) and a low amount to affordability. Maybe this helped with the little/no credit history I guess.

Have you checked the three credit agencies for your wife's record and that she is on the electric roll?

Ian_875

Thanks everyone, sounds like finance + credit card is the way to go.

Was just a bit wary of weighing up no credit history vs recently settle credit history when it comes time to apply for a mortgage.

Appreciate the comments

jimbo26

I don't think you'd ever go wrong with a settled, well serviced credit agreement, could only be positive.

Ian_875

Lauralou79 wrote: »

My partner had no real credit history when we applied for a mortgage. He hates credit and would rather save. Obviously a mortgage is a different league

Anyway we had no problems. We went with who we both banked with and had a high deposit (over 50%) and a low amount to affordability. Maybe this helped with the little/no credit history I guess.

Have you checked the three credit agencies for your wife's record and that she is on the electric roll?

Yeah, her credit reports look fine, and she's on the electoral role

System

DO NOT BUY WITH CASH. At the very least buy some or all of it on the credit card and pay off in full the following month to benefit from Section 75 protection.

JimmyTheWig

Tarambor wrote: »

DO NOT BUY WITH CASH. At the very least buy some or all of it on the credit card and pay off in full the following month to benefit from Section 75 protection.

I think when people say "cash" they mean "not on finance". But, yes, I agree with the sentiment.