Mortgage Offer - new mobile phone contract

DrSpendLittle

We're in the process of buying a house and have a mortgage offer in place.

My other half is thinking of changing his mobile phone contract (probably to an equivalent-ish cost) as his phone is dying. He's been due an 'upgrade' for some time but we've been nervous to change it since getting the most recent mortgage offer.

The other option is for him to go SIM only by cancelling his current contract and buying a new phone outright.

Either options affect his credit record. Do you think this may possibly have an impact on the mortgage providers perspective of our file when they run the check before completion and see a new credit agreement or the removal of an existing one? We have no other debt except our current mortgage and we are taking on 'biggish' mortgage.

We've been in the moving limbo for 10 months now so we're getting really fed up of putting things off until we move and it's likely to be a few months yet!

whitepaper

DrSpendLittle wrote: »

We're in the process of buying a house and have a mortgage offer in place.

My other half is thinking of changing his mobile phone contract (probably to an equivalent-ish cost) as his phone is dying. He's been due an 'upgrade' for some time but we've been nervous to change it since getting the most recent mortgage offer.

The other option is for him to go SIM only by cancelling his current contract and buying a new phone outright.

Either options affect his credit record. Do you think this may possibly have an impact on the mortgage providers perspective of our file when they run the check before completion and see a new credit agreement or the removal of an existing one? We have no other debt except our current mortgage and we are taking on 'biggish' mortgage.

We've been in the moving limbo for 10 months now so we're getting really fed up of putting things off until we move and it's likely to be a few months yet!

Stop worrying (at least about a new mobile contract)

You already have a mortgage offer in place.
No one is going to get too worked up about a replacement mobile phone contract.

Mobile phone contracts tend not to have much adverse affect on mortgage applications in the first instance (assuming they have not been defaulted, etc)- in fact they may have a postive effect on an application.

But you have already applied for your mortgage and been offered it.

Perhaps if the current mobile contract was for say £10 pm and you replaced it with one for say £500pm, that may have an adverse affect (based on affordability), but I'm sure you are not doing anything like that.

If want to play really safe, why not keep the current contract in place, but on a sim only basis. You probably should already be on a sim only contract if the phone is dying now.
In the event you are still paying for the mobile, even if it's already been fully paid for, then paying only for the current sim will reduce your outgoings, so can only be a good effect.
If you can afford to buy a new phone outright, it's usually cheaper than buying on credit anyway (which is effectively what a mobile contract including phone purchase is)

Perhaps more of a worry is how long this moving palaver is taking.
If you already have the mortgage offer in place, but are expecting it to take months before completion, that may become an issue as mortgage offers usually are only valid for 6 months.

Ben8282

Although the general advice is not to take out new credit immediately prior to applying for a mortgage you can't allow this to control your lives to the extent of inconvenience of this nature.
You say that the mortgage application is some months away yet so go ahead and get the phone.

[Deleted User]

You may have the offer in place but some lenders will also credit check you again before completion to confirm there has been no major changes in your circumstances.

If the contract is a SIM-only contract then that usually won’t have any effect.

If you’re also taking finance for a new phone then this is different and will be a new financial commitment that you may need to declare prior to completion.

DrSpendLittle

Thanks folks!

I think its a case of me over thinking due to the stresses and strains of the move taking so long!

First mortgage offer expired. Second offer expires in March!