Aargh! New credit applied for between DIP and full application...

confusionanddelay

We've got a DIP in place after a couple of attempts, We have a lot of credit card debt so affordability has been an issue. Had a chat with broker on Friday, it's all finally looking positive and he was going to submit the full application.

Just sorting out reservation fees and bits of paperwork to send over, and husband has just cheerfully told me that he's applied for a debt consolidation loan so that all his payments are in one place and this will be less than his credit card outgoings so 'this should help with affordability!' :eek: He hadn't thought about the fact that this would just come up as another loan application and would look really irresponsible. He is mortified - he just thought it was a positive step and hadn't thought about the credit search etc...

I'll call our broker first thing - but does anyone think there's any chance of us getting this sorted once it's all explained?

He applied for the loan last Thursday and is just waiting to hear if it's been approved or not. If it has, he'll do as he said and use it to pay off all other debts, which obviously we'll be able to prove. The new payment would be less than his minimum credit card payments. If not, our situation will be exactly the same as it was when we got the DIP.

It's Leeds, if that is helpful.

Any views welcome ... I'm worrying anyway!

A4445

I can’t imagine one credit search being an issue. I was recently approved and I’ve had 3 credit searches in the last 6 months.

I was advised that they don’t even look at searches. Taking out extra credit like a loan maybe an issue as the lender may assume you may not pay off the cards. Perhaps it would be a good idea to leave the loan application until after your mortgage completes. Even is accepted you can withdraw the application.

ACG

It does not sound like it is just 1 credit check as they say they have a DIP after a couple of attempts.

Tricky one to answer without knowing more. I think you will just have to see what the broker says tomorrow but if it is a credit scoring lender, you are not going to know until the full application goes in.

middleclassbutpoor

ACG wrote: »

It does not sound like it is just 1 credit check as they say they have a DIP after a couple of attempts.

Tricky one to answer without knowing more. I think you will just have to see what the broker says tomorrow but if it is a credit scoring lender, you are not going to know until the full application goes in.

Think OP has said it's Leeds who are the lender if that helps you indicate re credit scoring?

I seem to have read on here that they are a lender which can take its time to get things through and aren't the quickest so more manual processes probably would indicate more chance of things like this being looked at.

confusionanddelay

Thanks for the replies.
Bit more info … Leeds are the only lender our broker has been dealing with, the first DIP was declined as there were a few bits of credit we hadn't included as they'd be paid off before the mortgage started. Our broker tried again once he had our credit reports and this time we got the DIP. So far there is only 1 soft search showing up on our Equifax reports.

I'll give our broker a call first thing. I'll be gutted if this is a massive issue having come this far!