Mortgage approved - when can I apply for credit?

pablakeman

So once a mortgage is approved, am i ok to apply for credit? I want to make the most of IKEA and AO.com 0% offers for furnishing the new house , but I’ve heard a mortgage offer can be rescinded even after decision made.

Can anybody advise?

SusieT

You have been advised correctly. They can/will check again just before the money is transfered at completion so its better to wait until completion to start getting loans.

pablakeman

SusieT wrote: »

You have been advised correctly. They can/will check again just before the money is transfered at completion so its better to wait until completion to start getting loans.

Amazing - thanks.

What about spending on current credit cards? Within the limits that already exist. Is that likely to cause any issues?

epinjy

The usual advice is to not take out any credit, although it depends on the lender if they will check again or not. First Direct (HSBC) did not check my credit again after approving me for a mortgage. Just wait a couple of weeks/months, the 0% deals are going to be there regardless and a week or 2 extra without a sofa does not make a difference in the long run.

chunkytfg

I would guess how marginal your offer is makes a difference too.

If you're earning 100k a year borrowing 175k then a bit of credit on a washing machine and sofa is unlikely to make much of a difference.

If you're on 30k combined borrowing at your absolute max and having to prove every penny of overtime then its more likely to make a difference.

jackomdj

Re spending on current cards, if you already do and pay them for in full (for example) then they aren't going to object. If on the other hand you usually have a balance of £100 and it suddenly goes to £3000 any they see you only paying minimum payments they may question it.

Best bet is to do nothing different to what you usually do, that way they can't change their minds based on the changes.

DCFC79

Id wait until you have the keys or until the mortgage has been setup.

ethank

You do not need everything on day one. Try to curb your enthusiasm.

What essage are you sending to your future lender if you suddenly use a lot of your credit card limit in the weeks before you complete.

Its not worth it, wait until you've got the keys!

foxy-stoat

You should of confirmed to your lender your full financial situation currently and at the point of completion, so they base their lending decision on this information. Did you include this additional debt at the time of application?

pablakeman

All additional debt is factored into the mortgage application of course - nothing has been hidden! We should have the cash to get the first bits we need (washing machine, bed, sofa etc...). Of course, if we were desperate, we can do without a washing machine and a sofa for a couple of weeks, and even a bed if desperate! But we should also have the cash available for things too - the big thing that is going to catch us out is the flooring.

Appreciate the advice (even the ones with a tone of judgement) - it isn't about sending a message to the lender. Basically, it makes our lives easier if we can put some of the upcoming spend on credit - in an ideal world this would be interest free, otherwise if some gets put on a credit card it would be paid off the following month without interest. I am not looking to kit out the whole house or go crazy, just looking where the line lines and making sure we stay on the right side of it.

It seems that if I keep my current level of spending and ensure my debt is accurate (which it is) on the application, they wouldn't have a reason to reject. We also have a few k cash buffer, but this was eaten up largely by flooring which we didn't know about (may seem obvious to some, but we didn't know a new build comes without flooring!)

Cheers all - and if anybody has anything further to add, I appreciate the input!

foxy-stoat

pablakeman wrote: »

(may seem obvious to some, but we didn't know a new build comes without flooring!)

Cheers all - and if anybody has anything further to add, I appreciate the input!

Flooring is normally negotiated in the price as an incentive. If you have already exchanged then not a lot you can do now apart from pay for it.