Can I get new credit card following mortgage approval

Lilsycamore

In the middle of buying a house. Mortgage has been approved and searches near completion. 

I have come out of my 0% interest free period on a credit card. There's a fair bit on there and interest is around £200 a month. I've held of switching as was in mortgage application stage. 

Is it ok to go ahead and apply now I have the mortgage offer and the mortgage company have done the credit search on my file?

[Deleted User]

Don't apply for any new credit until you've completed.

Lilsycamore

Thanks, is this because the mortgage company will run another check before transferring funds on completion?

[Deleted User]

They may do, which is why it's not worth the risk of them pulling the mortgage.

martinbainbridge1975

Lilsycamore said:

Thanks, is this because the mortgage company will run another check before transferring funds on completion?

They should only do 1 hard search as each one is detrimental to your credit file, the FCA are very much against customer detriment. During the mortgage application process they will ask you if you have any items due to come onto your credit file in the next 45-60 days, they would not show on your credit file necessarily but the hard search would be on your credit file.

Add to this they will no doubt have asked you to provide wage slips / bank statements and scrutinised the income and outgoings already.  The justification in swapping cards is that saving 200 interest improves your affordability for the mortgage and net disposable income

There is justification to move cards due to the interest being paid therefore I don't see any harm, the only things I would say is speak to the mortgage lender and also make sure the card your moving from is closed down.

F1shyFingers

martinbainbridge1975 said:

Lilsycamore said:

Thanks, is this because the mortgage company will run another check before transferring funds on completion?

They should only do 1 hard search as each one is detrimental to your credit file, the FCA are very much against customer detriment. During the mortgage application process they will ask you if you have any items due to come onto your credit file in the next 45-60 days, they would not show on your credit file necessarily but the hard search would be on your credit file.

Add to this they will no doubt have asked you to provide wage slips / bank statements and scrutinised the income and outgoings already.  The justification in swapping cards is that saving 200 interest improves your affordability for the mortgage and net disposable income

There is justification to move cards due to the interest being paid therefore I don't see any harm, the only things I would say is speak to the mortgage lender and also make sure the card your moving from is closed down.

Complete codswallop.

They can run a check again precisely to see if the customer's risk has changed post-application and pre-completion because they don't want people passing their checks and then saddling themselves with a boatload of debt, which will drastically change their risk profile.  The FCA is also very much against consumers being saddled with unaffordable debt...

By your faulty reckoning, nobody would be allowed to be credit checked because it's "detrimental to the consumer."  Think about it.

martinbainbridge1975

F1shyFingers said:

martinbainbridge1975 said:

Lilsycamore said:

Thanks, is this because the mortgage company will run another check before transferring funds on completion?

They should only do 1 hard search as each one is detrimental to your credit file, the FCA are very much against customer detriment. During the mortgage application process they will ask you if you have any items due to come onto your credit file in the next 45-60 days, they would not show on your credit file necessarily but the hard search would be on your credit file.

Add to this they will no doubt have asked you to provide wage slips / bank statements and scrutinised the income and outgoings already.  The justification in swapping cards is that saving 200 interest improves your affordability for the mortgage and net disposable income

There is justification to move cards due to the interest being paid therefore I don't see any harm, the only things I would say is speak to the mortgage lender and also make sure the card your moving from is closed down.

Complete codswallop.

They can run a check again precisely to see if the customer's risk has changed post-application and pre-completion because they don't want people passing their checks and then saddling themselves with a boatload of debt, which will drastically change their risk profile.  The FCA is also very much against consumers being saddled with unaffordable debt...

By your faulty reckoning, nobody would be allowed to be credit checked because it's "detrimental to the consumer."  Think about it.

What is codswallop or whatever its called about saving yourself £200 a month interest?  That much interest suggests a balance around 10k to me and possibly more - i'm talking from experience of being in a similar situation a few years ago.

As for saddling with unaffordable debt that is why the affordability check is put in place, you can pass a credit check and fail on affordability grounds. 

It may not always be advisable to move things in the middle of a mortgage application but if you left it 3 months that is £600 in interest - that's potentially a month's mortgage payment if not more in some cases.

That is why I stated speak to the mortgage lender for guidance before doing anything - once again logical to seek guidance before acting.

Not all mortgage lenders do a hard credit search at AIP/ DIP stage, there are lenders doing soft searches at decision in principle stage, a number of those are high street banks  Natwest / Halifax / Santander /Nationwide. 

Do you know what CEMAP is fishy fingers?

mcpitman

martinbainbridge1975 said:

F1shyFingers said:

martinbainbridge1975 said:

Lilsycamore said:

Thanks, is this because the mortgage company will run another check before transferring funds on completion?

They should only do 1 hard search as each one is detrimental to your credit file, the FCA are very much against customer detriment. During the mortgage application process they will ask you if you have any items due to come onto your credit file in the next 45-60 days, they would not show on your credit file necessarily but the hard search would be on your credit file.

Add to this they will no doubt have asked you to provide wage slips / bank statements and scrutinised the income and outgoings already.  The justification in swapping cards is that saving 200 interest improves your affordability for the mortgage and net disposable income

There is justification to move cards due to the interest being paid therefore I don't see any harm, the only things I would say is speak to the mortgage lender and also make sure the card your moving from is closed down.

Complete codswallop.

They can run a check again precisely to see if the customer's risk has changed post-application and pre-completion because they don't want people passing their checks and then saddling themselves with a boatload of debt, which will drastically change their risk profile.  The FCA is also very much against consumers being saddled with unaffordable debt...

By your faulty reckoning, nobody would be allowed to be credit checked because it's "detrimental to the consumer."  Think about it.

What is codswallop or whatever its called about saving yourself £200 a month interest?  That much interest suggests a balance around 10k to me and possibly more - i'm talking from experience of being in a similar situation a few years ago.

As for saddling with unaffordable debt that is why the affordability check is put in place, you can pass a credit check and fail on affordability grounds. 

It may not always be advisable to move things in the middle of a mortgage application but if you left it 3 months that is £600 in interest - that's potentially a month's mortgage payment if not more in some cases.

That is why I stated speak to the mortgage lender for guidance before doing anything - once again logical to seek guidance before acting.

Not all mortgage lenders do a hard credit search at AIP/ DIP stage, there are lenders doing soft searches at decision in principle stage, a number of those are high street banks  Natwest / Halifax / Santander /Nationwide. 

Do you know what CEMAP is fishy fingers?

Do you? General advice is not to take credit on during mortgage applications.

I used Nationwide for my mortgage, I was hard searched for DIP then soft searched on the day of completion.