Changes in credit between offer and completion

Cuddlybearman

Hi all - since my house buying process is taking much longer than expected - i had to re-finance my car last month so i'm wondering if this would bother the bank.
Situation is that i had finance with Mercedes for £38K at £522 a month and that ended (and actually closed the account) - but we took out a new finance with Audi in my wife's name for £22K @ £380 p/m.
Surely the fact i have reduced my outgoings would be a positive? - just a bit unsure that changing it to my wife's name would be an issue. I thought i better than me taking out another finance agreement (probably before the old one closed off the credit report) and she is joint on the mortgage - but her earnings are much lower than mine.
Nothing else in my credit file has changed - what do you think?

Carl2510

I think you’ve been very silly, you must of read these forums, everyone says no new credit until you’ve got the keys in your hand. I’m not sure if the lower payment will mean they would look lightly on it but still doesn’t take that fact you’ve taken out new credit which could easily make a lender pull there offer.

Cuddlybearman

Well i dont have much a choice if my car finance ran out. What am i supposed to do just not have a car?? it could be another 2 months before i get the keys. And there isnt any 100% that they will do another credit check anyway. In fact the guy at HSBC told me when i applied that they only do credit checks on a 6 month basis but if they have a problem i'll speak to them. The fact that borrowing and monthly outgoings has almost halved surely common sense prevails?

Seashell517

Cuddlybearman said:

Well i dont have much a choice if my car finance ran out. What am i supposed to do just not have a car?? it could be another 2 months before i get the keys. And there isnt any 100% that they will do another credit check anyway. In fact the guy at HSBC told me when i applied that they only do credit checks on a 6 month basis but if they have a problem i'll speak to them. The fact that borrowing and monthly outgoings has almost halved surely common sense prevails?

If you already know the answer then why post this thread? 

Cuddlybearman

Well i was going to call them to ask them if its an issue (since i havent actually collected the car yet) but i thought maybe someone here might no rather than bring something to attention that doesnt need to be...

Cuddlybearman

So after completely stressing out for an hour (thanks) I called HSBC and was told 100% that no further checks are doing before drawdown of funds once the offer is made unless the applicant wants to change the offer. She said it would even matter if you went out and took out a £25k personal loan the day before it wouldn’t an issue (??!)

Just in case anyone here has the same question with HSBC in the future.

MaryNB

Cuddlybearman said:

Well i dont have much a choice if my car finance ran out. What am i supposed to do just not have a car?? it could be another 2 months before i get the keys. And there isnt any 100% that they will do another credit check anyway. In fact the guy at HSBC told me when i applied that they only do credit checks on a 6 month basis but if they have a problem i'll speak to them. The fact that borrowing and monthly outgoings has almost halved surely common sense prevails?

For future reference, this logic doesn't always work. My friend remortgaged recently and reduced his monthly repayments. He then went to take out a car loan. The sum of his new mortgage repayments and car loan repayments would have been less than his previous mortgage repayments. Didn't matter, got rejected for the loan. His bank didn't like two major credit applications within a few weeks of each other.  

Carl2510

Cuddlybearman said:

So after completely stressing out for an hour (thanks) I called HSBC and was told 100% that no further checks are doing before drawdown of funds once the offer is made unless the applicant wants to change the offer. She said it would even matter if you went out and took out a £25k personal loan the day before it wouldn’t an issue (??!)

Just in case anyone here has the same question with HSBC in the future.

Just because it might not happen to you, it still does happen. Safest bet is usually don’t get any new credit out.

AAGG1234

Cuddlybearman said:

So after completely stressing out for an hour (thanks) I called HSBC and was told 100% that no further checks are doing before drawdown of funds once the offer is made unless the applicant wants to change the offer. She said it would even matter if you went out and took out a £25k personal loan the day before it wouldn’t an issue (??!)

Just in case anyone here has the same question with HSBC in the future.

Keep us posted and good luck.