Credit card application before completion

craig_87

Hello,

We have just had a mortgage approved by Halifax and waiting for completion. Stupidly my partner has taken out a credit card a few days ago (small limit of only £200). I obviously knew straight away this was a huge mistake. She hasnt used it and closed it down as soon as she was aware of the mistake.

Will this be an issue come completion, clearly hasnt effected out affordability or no new debt but we a panicking. Especially after reading these forums.

Broker advises its not an issue and only becomes one if you spend and accumulate more debt. Doesnt even think the credit check will show anytime soon either.

Is he right, are we worrying for nothing?

beth85

I doubt it will even show up on your credit report before you complete. Personally I wouldn’t worry about it. 

craig_87

Thanks, i get that impression but always the horror stories on the internet that gets you second guessing yourself!

FtbDreaming

I’m panicking too. My solicitor has requested funds and when looking for home insurance last night one of the companies done a credit search. I was fuming. 

craig_87

Id like to think if anything did flag on the final credit check the banks wouldn't automatically withdraw. My assumption would be youd be given the right to explain.

Assume instant withdrawals of offers are if you take on thousands of extra credit somewhere, be strange if credit checks alone escalated to that.

[Deleted User]

Id be concerned too but not due to credit reports - but that I was buying a house with someone who had no conception of the damage this could potentially do 

craig_87

Mistakes happen, we live and learn.

onthemend88

My friend bought a house last year and her mortgage was with Halifax. She took a car out on finance between exchange and completion and everything was fine. I don’t know if they did a new affordability check on her but the sale went though without a glitch. 

We are competing today, albeit through an adverse lender, however I have avoided anything I think will trigger a credit check including things like utilities, sky/bt packages and home insurance (don’t need it until today anyway). 

Good luck with your purchase. I hope all goes well

PJBRFC

FtbDreaming said:

I’m panicking too. My solicitor has requested funds and when looking for home insurance last night one of the companies done a credit search. I was fuming. 

Doesn't matter at all. Checks made by insurance applications will not cause you any problems, ever. Same as if you were to order something like Virgin Media, they would also credit check you and it wouldn't matter. Don't be fuming. 

seradane

I did exactly that - mortgage offer with Halifax, in process of buying, then my credit card changed it's terms and if you didn't accept the new terms they would close the card. So I let it close and applied for a replacement card with another company. Didn't have any issues with the mortgage going through.

I'd say if your credit score is dubious or you're on the cusp of affordability then yeah I'd be very apprehensive about doing anything to impact your status vs when you first got the AIP. But beyond that, it's not going to cause you any problems.

craig_87

Affordability is fine, borrowing 60k less that they offered at DIP stage. In the mortgage offer is states they have the right to withdraw if there is significant changes in circumstances.

Not convinced a credit card application im worried about or general things others worry about like new sofas, small missed payments etc fit into that category. 

Above confirmed by my broker earlier, only examples hes had of withdrawals are due to fraud or taking out 20k plus on a new car for example, very rare apparently.