New debt during mortgage application

San_Jose

Currently in the process of buying my first house. I am at the point where I'm due to sign solicitors contracts and I have a mortgage offer in place. The house is a new build and wont be complete until the end of Nov. I am looking to buy a new car at some point and was wondering at what point in my mortgage should I be looking tj take on more debt. I obviously dont want to jepordise my mortgage offer. The loan is only for a small amount and I will have it pad off in less than a year. 

jamielutz1987

Rule of thumb is to not make any credit applications, take on new debt/commitments until you've completed and have the keys in hand. At least that's what my broker always says.

watch3r

jamielutz1987 said:

Rule of thumb is to not make any credit applications, take on new debt/commitments until you've completed and have the keys in hand. At least that's what my broker always says.

I would agree with that . If you can - don’t as that might affect it but you will be not sure until you try . 

NatalieAGC

I complete 17th July with virgin money. I have no finance and all credit cards balances said 0. 

Rather than take a new car deal out and risk mortgage I hired a car for 2 months and that was paid on my credit card ( more security via online than anything else) £700. 

My credit file took a hit and I lost 125 points!! And I’m less than 2% of available credit!

the funds have been requested so I prob don’t need to worry but if they credit searched me again it doesn’t look good and it’s only £700. 

I got mortgage offer on the 2nd July and complete next week.. I doubt another check will be made. 

However I see a lot on here new builds take a lot of time and lenders usually re check as so much time is between application and completion 

San_Jose

Thanks all, I've heard similar things and as it's a want and not a need I'll leave off until I've moved in. Thanks again. 

csgohan4

As this chump found out, their mortgage offer was withdrawn on applying for more credit and this was pre covid. Lenders are more stricter now and they can and will do credit checks prior to completion

https://forums.moneysavingexpert.com/discussion/5930981/help-mortgage-offer-withdrawn-after-exchange/p1

[Deleted User]

NatalieAGC said:

Rather than take a new car deal out and risk mortgage I hired a car for 2 months and that was paid on my credit card ( more security via online than anything else) £700. 

My credit file took a hit and I lost 125 points!!

That's only around 2 points per day of car hire. Pretty good value.

You could hire a car for 500 days before you ran out of Experian points.

csgohan4

Deleted_User said:

NatalieAGC said:

Rather than take a new car deal out and risk mortgage I hired a car for 2 months and that was paid on my credit card ( more security via online than anything else) £700. 

My credit file took a hit and I lost 125 points!!

That's only around 2 points per day of car hire. Pretty good value.

You could hire a car for 500 days before you ran out of Experian points.

can I collect points on spending too? then redeem them?