Mortgage offer and need loan

sourcrates

You may need to re-think this loan/mortgage as any new searches on your credit file will be highlighted by the final credit check the mortgage lender will do.

As a basic rule of thumb, if you have to borrow for essentials, then its probably not a good idea at present especially if a last minute change of plan has thrown such a big spanner in the works, it may be best not to make the situation any worse.

Is the stairlift for you ? perhaps a bungalow would have been more suitable ?

Sncjw

Does the new build company not supply carpets when they build it. Did they not ask what fittings you wanted. 

Could you not get cartpet from like scs and do it on finance once you completed. It might be a while until you get the carpet fitter anyways 

MovingForwards

An alternative is wait until completion is confirmed (ie solicitor says it's gone through and you can get the keys), then apply for a loan, delaying moving from your rental until the house is done.

It will cost you more due to paying the mortgage and rent, but unless your mom can lend / gift you more, you don't have much choice.

spud73

Don’t want to risk completing then not being able to live in it for months due to not being able to get basics if for some reason I can’t get a loan after that. Might ring the mortgage broker and see if they can advise anything otherwise wait till the mortgage goes through but I feel like that’s a huge risk for me.
if I’m going to lose the house anyway I feel like I might as well apply for the loan 

and hope it does all go through, I know that sounds really stupid but is it possible? 

spud73

I do understand and am grateful what you are all saying re warnings but I find it hard to believe that no one has needed to do this before, things like this must happen to other people?

spud73

I will look into moving completion date a little earlier and wait till if it completes first if that’s the only way but was hopeful that it wasn’t??!

spud73

Just had my date for notice on my current rental and got 2 extra weeks so may wait until after the completion date. Will get further advice. Thanks so much to all on here for letting me know about the pitfalls! 

nyermen

spud73 said:

Just had my date for notice on my current rental and got 2 extra weeks so may wait until after the completion date. Will get further advice. Thanks so much to all on here for letting me know about the pitfalls! 

Please please do.  As someone who worked for a time with bank credit scoring teams (as we took their numbers for regulatory compliance purposes), a final check is sometimes undertaken very shortly before transferring the funds (I dont know how often, about 50% of the banks I worked I was aware that they did).
That was 5+ years ago.  Today, with more anti fraud & "responsible lending" measures, I suspect the percentage is higher.  If they see a search for new credit, at the best they will potentially reduce the amount they lend by the same amount (and thats best case, they could just pull the offer).  You'll have exchanged at that point and so if you can't complete, things will be a lot worse.

One more thing - you may think that your existing (mortgage?) bank is the one to apply through, but again, they may have a policy of no new lending for x months.  HSBC does for example.

MovingForwards

If you apply for the loan and have your mortgage offer pulled, provided it's before exchange of contracts, all you'll lose is the legal costs and any holding deposit paid.

If you do the above after exchange of contracts you have to pay the full deposit, plus any sale fees / costs incurred by the seller to relist the property, also if the property sells for less you're liable for the difference.

Seriously, take a step back and think about the huge risk this is. 

Is the bathroom upstairs or downstairs? If downstairs then sleep in the living room until everything is done.

I know how hard it is getting the right place due to being disabled, but you're going about this wrong.

spud73

Right think that’s clear. I will wait until after competition as I have found out I have 2 extra weeks in my current property potentially due to the rental period being fixed. I will apply for loan the day after completing and hope it goes through- don’t know what I’ll do if it doesn’t but have a good credit rating etc and could do a soft search in advance I suppose. Wish there was another way I could do it but don’t think there is…