Concerned about credit decline after mortgage

reeceg353

Hi all,

Recently exchanged on a house, it’s a new build so moving in date/completion won’t be until beginning of July.

My mortgage was approved within a week from NatWest without any issues but I’m a first time buyer, I don’t have any furniture and went shopping today for sofas.

I applied to put these on finance with simple payments of £80 a month for a year. I wanted to do this because I’ve just cleared my bank account out for the house deposit.

I’ve heard that lenders double check credit files before they actually move their monies one last time (before completion date) and I’m very very worried that this credit application being declined might affect that at all?

I’m completely baffled by being accepted on a £435k house but being declined for £1200 worth of furniture??


To conclude;
Mortgage accepted last month
Recent £1200 credit application declined
Will it affect my mortgage?

[Deleted User]

The usual advice is don't apply for any finance until you have moved in, there have been cases where mortgages have been lost because of it (a couple of threads on this board in fact).

Is it really worth losing a house over waiting until you move in before you buy a sofa?

And if you were offering a loan to someone, wouldn't the fact they had already agreed to pay someone else a huge amount of money make you less likely to lend? Not baffling at all!

No guarantees either way, you may be lucky.

middleclassbutpoor

General rule of thumb is that you should never apply for credit until after you have completed.

I don't know if Natwest will do another check or not as all lenders are different. Likewise, we don't know whether you were borrowing to your full capacity or whether you were well within what they would lend.

Not a lot you can do about it now.

When do you complete?

ACG

You would not be declined for £1200 furniture.
You may have your offer pulled as you now have an £80 a month commitment you never had when applying - if it is tight on affordability.

As you have now had another credit check, you may find you no longer score highly enough IF they do another check on you.

It is unlikely they will pick up on this, but if they do, if it passes affordability with the £80 a month, it should still be fine. If it does not, you may find you need to go and pay off the debt.

babyblade41

Just shows the generation gap.. not saying younger people are wrong but why credit? My first house didn't have a sofa for 18 months

I'm obviously very old as if you haven't the cash to buy it then you can't have it..all these 0 percent finances invariably have an over inflated start price

reeceg353

I complete on 28th June, exchanged the other week.

My affordability isn’t a problem as I bought £70k less than I could have been offered. I’m not entirely sure why I was declined for furniture because the mortgage money loaned shouldn’t actually be on my file until I’ve actually received it?

I have £0 credit card debt either, I wish I just put it on my credit card now rather than assuming I’d be passed for £1,200 sofa...

I guess no point worrying about it too much, if I get my offer pulled then I’ll just have to deal with that. I’ll let my broker know tomorrow

Lioness_Twinkletoes

ACG wrote: »

You would not be declined for £1200 furniture.

It actually reads like the OP has been declined.

AnotherJoe

reeceg353 wrote: »

To conclude;
Mortgage accepted last month
Recent £1200 credit application declined
Will it affect my mortgage?

Probabiy not but be glad you were declined since getting new credit might. Just wait.

middleclassbutpoor

If you are not moving until June - I wouldn't be worrying about sofa's in April......

Learn from it - save up the £1200 and then go back and place the order with cash.

ian1246

Just do what myself and wife did - get yourself down to the local British Heart Foundation Charity Shop every couple of days and see what furniture they have there to kit your house with, whilst also scrounging from family/friends for unloved/unwanted furniture. We kitted our 3 bedroom house initially for about £150 - making use of a old single bed for our 2nd bedroom (still have it!) for when we have guests, using our parents old & worn 2 seater & 3 seater sofa's with throw overs on for the living room and an unloved (but nice) Kitchen Table & 6 Chairs which had lived in my wife's parents attic for the better part of a decade - whilst everything else came from the British Heart Foundation, purchased over the course of several months before & after moving in, when a good deal came up...

The sole exception was a £650 King Sized Bed & Mattress we purchased brand new from Dreams, which had Pillow & Mattress protector thrown in - the Mattress alone was worth over £1000, but we took advantage of their "student" deal (cheap mattress & bedframe, with the option to swap the mattress and get £250 put towards a different, much better, mattress) and also did some pretty cut throat negotiating on the price (the staff member had a right nightmare putting it through the till due to error-codes repeatedly popping up for the level of discount we ended up with :beer: ).

Genuinely, don't spend big bucks on "nice" furniture until you ve moved in. Decorations change and £££ can be better utilised elsewhere - you can always get furniture later... such as on Black Friday or January Sales (we replaced our sofa's in January 2018... it cost us around £1000 for a lovely 3 seater reclining sofa & a fixed 2 seater sofa... we had been in our house for nearly 3 years by then). Sole exception is a good bed - essential for a good nights sleep!

AdrianC

ian1246 wrote: »

The sole exception was a £650 King Sized Bed & Mattress we purchased brand new from Dreams, which had Pillow & Mattress protector thrown in - the Mattress alone was worth over £1000

"Worth"...? A grand for a mattress is extortion, pure and simple.

There are excellent mattresses available for a fraction of that - we have a Simmons Backcare Elite, which was <£200 delivered, king-size. The bed frames in our spare rooms were both <£100, both antique, one steel, one wood - the wood one came with a top-notch near-new mattress, too.