Taking out a furniture loan after mortgage offer?

Nic34

Hi, I recently accepted a mortgage offer from HSBC for a new build property to be completed in October. I'm FTB, mortgage is 75% LTV, borrowed amount is 3x income.
I'm considering buying some furniture now with a finance plan (12-24 months interest free), which is similar to taking out a loan and involves a credit check.
Should I let HSBC know? Can they withdraw the mortgage offer because of this?
Thanks

MaryNB

Be careful. A lot of lenders do another credit check before releasing the funds. I've heard about someone having their offer rescinded because they bought a load of furniture on credit before the lender did their final check. The purchases had a significant impact on their credit file.

Don't buy furniture until you've exchanged contracts. In case anything causes the sale to fall through. 

Grumpelstiltskin

MaryNB said:

Be careful. A lot of lenders do another credit check before releasing the funds. I've heard about someone having their offer rescinded because they bought a load of furniture on credit before the lender did their final check. The purchases had a significant impact on their credit file.

Don't buy furniture until you've exchanged contracts. In case anything causes the sale to fall through. 

You don't NEED to get a loan for furniture, you may WANT brand spanking new expensive furniture to make your house look like a show home but it isn't essential.

amnblog

No, No, No

Grabs39

The mortgage lender may well do further checks and so new borrowing is a bad idea.  Plus the sale could yet fall through, and the furniture might not be right for a different property.

Also, having just moved myself, the last thing I want to do is take out further committed spending, just in case the worst should happen over winter with COVID, and it takes a while for finances to settle; get used to the new bills, unexpected extra purchases etc.  I'd suggest moving, giving it a few months, then decide; you might have saved enough to buy furniture over that time anyway.

We bought some furniture from IKEA, and new sofas all paid from savings so are now having to replace that cash over the next few months.  We'd factored wanting these into our moving funds, so had saved the cash over what we needed for the deposit and legal fees.  We have my late great-grandmothers dining furniture as well which was buried in the back of my parents garage - its perfectly functional, was free and will do for the foreseeable.

MovingForwards

Do not take additional finance out until you have the keys in your hand. There is a risk the lender will withdraw a mortgage offer and it has happened to a member of MSE.

Pay cash, buy second hand, get free second hand furniture, but if you want that home do not jeopardize it by taking out credit or even putting it on your CC.

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

getmore4less

MaryNB said:

Be careful. A lot of lenders do another credit check before releasing the funds. I've heard about someone having their offer rescinded because they bought a load of furniture on credit before the lender did their final check. The purchases had a significant impact on their credit file.

Don't buy furniture until you've exchanged contracts. In case anything causes the sale to fall through. 

Ignore the above. 

Don't get any new credit till you have completed..

davidmcn

getmore4less said:

MaryNB said:

Be careful. A lot of lenders do another credit check before releasing the funds. I've heard about someone having their offer rescinded because they bought a load of furniture on credit before the lender did their final check. The purchases had a significant impact on their credit file.

Don't buy furniture until you've exchanged contracts. In case anything causes the sale to fall through. 

Ignore the above. 
Don't get any new credit till you have completed..

I think the second point was more a general one about not committing to expenditure for the new house until you have a contract, rather than the credit point particularly.

MaryNB

davidmcn said:

getmore4less said:

MaryNB said:

Be careful. A lot of lenders do another credit check before releasing the funds. I've heard about someone having their offer rescinded because they bought a load of furniture on credit before the lender did their final check. The purchases had a significant impact on their credit file.

Don't buy furniture until you've exchanged contracts. In case anything causes the sale to fall through. 

Ignore the above. 
Don't get any new credit till you have completed..

I think the second point was more a general one about not committing to expenditure for the new house until you have a contract, rather than the credit point particularly.

Yep, I should have clarified with "even in cash". I've seen a few posters on this forum panic over furniture deliveries because exchange, and hence completion, has been delayed.

Kiwistrawb1990

MovingForwards said:

Do not take additional finance out until you have the keys in your hand. There is a risk the lender will withdraw a mortgage offer and it has happened to a member of MSE.

Pay cash, buy second hand, get free second hand furniture, but if you want that home do not jeopardize it by taking out credit or even putting it on your CC.

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

Reading this example has given me crazy anxiety and it hasn't even happened to me lol 

KAP0365

We were checked twice more with our first mortgage a couple of days before completion. Not sure if it will happen with our new lender but we are even being careful about using existing credit cards, anything we buy (and we’ve bought some furniture) has been from savings and can be cancelled 3 working days before just in case. The only things I’m going to buy are some curtains and blinds as we literally don’t have any for the new house and our first night there (new build) but everything else can wait until completion actually happens. It isn’t worth the risk... and we are 68% LTV on a new build, supposed to complete next Friday. 

Nothing is guaranteed until you have the keys in your hand. I wouldn’t even take out any new credit unless desperate or until we’ve got used to new mortgage payments and definitely waiting until after winter just in case. Go cheap, and/or use savings, or if you have to do it on finance, WAIT UNTIL COMPLETION.

Better to own your empty dream home and wait for delivery rather than lose the whole thing.