Advice please: Mortgage offer THEN taking out a credit card?

BizHighflyer

Hello!

We in the process of porting our existing Nationwide mortgage (+ borrowing additional funds), expecting the formal mortgage offer to arrive early next week sometime following the valuation which is underway. However, we won't be completing until July as the house needs to be built first.

Assuming then that the mortgage offer is made next week - but we don't complete for several months but before the offer times out - could we safely apply for a 0% credit card AFTER the mortgage offer has been made, but before completion, without putting it at risk?

Would Nationwide retract the offer if we take out a credit card over after they make the formal mortgage offer?

Thanks in advance, guidance would be really helpful!

Ag2021

Personally I wouldn’t take any form of credit, regardless of interest rate, before the mortgage is drawn down. It’s a new credit commitment and the lender may well do another check before releasing funds. 

[Deleted User]

The advice always is no new credit until completion as you are putting yourself at risk. Also Ive noticed as new builds have a long gap between offer / exchange and to completion, some lenders are doing fresh checks in case furlough, redundancy, not paying other loans etc. 

Total risk in my view  

BizHighflyer

There is a gap of four months so yes, it is a big risk.
I will act with caution and stay away from credit in which case. Thanks all.

Mani_London

sorry had a question, what about using credit card for day to day purchase or a weekly grocery shopping ? is that ok ?

L_T_88

Mani_London said:

sorry had a question, what about using credit card for day to day purchase or a weekly grocery shopping ? is that ok ?

Was your offer subject to any conditions? E.g. paying off the balance? As long as it's minimal (utilisation-wise) and the balance before completion will be £0 or as provided for in the application, I think you'll be fine. There's no new credit.

Mani_London

L_T_88 said:

Was your offer subject to any conditions? E.g. paying off the balance? As long as it's minimal (utilisation-wise) and the balance before completion will be £0 or as provided for in the application, I think you'll be fine. There's no new credit.

Thanks @L_T_88: there is nothing mentioned about any condition except the building insurance. The time of application i had around £200 balance which is like my monthly grocery or other small expenditures and it gets paid full every month through direct debit. I have start using my debit card and doing very small transactions on credit card for my credit rating to be good. Will start using once i complete (fngers crossed)