Mortgage application & credit

zoe25

Hello


I am currently applying for a mortgage (with Natwest, with whom I also have my current account which is run entirely in credit) in my sole name. LTV is c42%. My broker has advised me to stop using my credit cards until completion (most likely January) 'just to be on the safe side'. I use 2 cards for regular monthly spend for points, which I clear in full every month - and my credit file shows these regular full payments.


I also have a 0% card which I used for a cash advance for some unavoidable expenditure, which I'm paying off at the minimum monthly value and will clear in full before the end of the 24 months - again no late payments and I won't add any additional spend on this card; the outstanding balance on this card has been taken into account in the calculation of the loan amount.


This house purchase is as a result of a relationship break-up and I need to purchase some items quite urgently that my former partner took when he moved out (eg furniture) and was hoping to buy on 0% credit or at least on my points card - but am now worried that doing that will adversely impact my mortgage application. Also I was planning on using the points cards for Christmas spend.

Once I have the mortgage offer, can this be rescinded or reduced if there's further credit activity? Do I really need to transfer all my spend onto my debit card - especially as presumably Natwest can see my account activity anyway?


thanks

Zoe

ACG

A mortgage offer can be pulled if your circumstances change right through until completion.

The advisor has given you best advice in their experience and I would echo it.

Would you rather have a house and no furniture for a couple of days or furniture and no house?

Not to be rude (but maybe a little blunt) nobody "needs" furniture that badly. You can live without everything bar maybe a bed for a couple of days. Bang a TV on a chair or if no chair then just on the floor and if no TV then that resolves that problem.

zoe25

yes I can live without most things but my kids need beds... (my ex has moved out of our family home and has taken them to his new place)
Should I also switch my normal spending to my debit card so as not to increase 'credit' on my points cards?
thanks for your reply.

ACG

If you pay the card off in full each month then I would say you can carry on doing that if you have been doing that anyway.

Sleeping bags Assuming the kids are under 10, it will be exciting for a couple of nights.

Chances are it will not make any difference, but its a big risk to take for the sake of couple of days.

zoe25

I most likely won't be completing til January - seller wants one last Xmas in her family home - so it's not really a couple of nights... they're currently in with me (age 7 and 4, fine but not ideal longer term...!!) If it's really going to affect the application I'll figure something out but just wondered how likely they are to worry about cards I pay off in full! and for regular spend like groceries and fuel.

KnowledgeIsLife

I would maybe try taking your MA advise I work for a mortgage company and deal with this side of things (not NatWest) may slightly be different but I know we after a certain length of time do rescore applications and if any other debt shows could affect affordability and lower the maximum loan amount if this happened before you cleared the debt then this could cause some small bumps in the road.