I've ordered a sofa and mattress on finance before completion (after exchange)...

Flugelhorn

Dumbo1986 said:

Flugelhorn said:

Dumbo1986 said:

BarelySentientAI said:

Dumbo1986 said:

What’s incredible is that my advisor nor my solicitor said anything about making any purchases on credit in the interim. I checked my mortgage offer from Nationwide and it doesn’t say anything either. By some dumb luck I stumbled upon a Reddit thread and it set alarms bells ringing.

It really shouldn't need your advisor, solicitor or lender to say "don't take out extra credit while you are getting a mortgage".

Having said that, it isn't the first time your situation has come up on these boards so perhaps it isn't so obvious to everyone.

As far as I can recall, they all worked out fine.  Next time, just wait until after you've moved in though?  Waiting an extra few days for your sofa is easier than the stress.

Just to add, it should need our advisor and/or solicitor to say this, as that's what they're paid for. My wife and I have £2,500 left as cash to save/spend once we're done paying to survive for the month. Like I said, an extra £100 a month between us isn't exactly going to see us struggling to pay our mortgage so we didn't even really think about it. Our mortgage payments will be exactly the same as our rent, so we know what we can and can't afford.

And also, we have been saving up before moving, for years and years! This is literally the first two items in our lives we've put on credit. If failing to complete costs us more than the deposit then we might as well just find the nearest tall building...

seriously if you have £2.5K left at the end of the month, why did you get credit for these items?

Because our cash flow at the moment is incredibly small after paying for all the expenses that come with buying a property. We wanted to have nice things after living in rentals for the last 10 years and living on other people's !!!!!! furniture. Paying £150 a month for new sofas, mattress, fridge and carpet seemed a lot more sensible to us than paying £5k upfront (which would take us months to save). The house needs some TLC.

sorry I don't quite understand - if you have 2.5K left as cash to spend / save at the end of each month then it would have only taken 2 months to save up the £5K for all the things you wanted to put into the new house

Mr.Generous

Just a handy hint, when you say rent is same as the mortgage so you know you can afford it - ownership brings a few extra costs along. How much did you spend on maintenance and building insurance when renting? Boiler repairs? electrical repairs? Furniture and flooring replacements? If the boiler failed or the roof leaked you had the hassle of calling the landlord, not the costs to fix. A replacement boiler just cost me £2500 in a renter. A roof repair thankfully only £600.

WellKnownSid

My daughter (FTB) has just had her thick report from the solicitors through.  In it, it clearly talks about the risks around completion if circumstances change, spelling out credit checks and other things.

She didn't need that though - I had already drilled into both of them NO SPENDING between mortgage application and completion and they've been very well behaved   As others have said - it will probably be fine but it's not guaranteed to be fine - it's careless, so put a stop to all unnecessary spending.

We picked up a lovely wood and leather sofa when we moved into our current place from a British Heart Foundation furniture shop £80 delivered.  Every visitor we have is jealous of it, it was probably £6k new.  We don't bat an eyelid when the cats are sick over it.

Dumbo1986

BikingBud said:

Cost to cancel?

Cancel what, sorry? If you mean the finance I've heard it doesn't make a difference anyway now? Couple hundred quid.

Dumbo1986

Flugelhorn said:

Dumbo1986 said:

Flugelhorn said:

Dumbo1986 said:

BarelySentientAI said:

Dumbo1986 said:

What’s incredible is that my advisor nor my solicitor said anything about making any purchases on credit in the interim. I checked my mortgage offer from Nationwide and it doesn’t say anything either. By some dumb luck I stumbled upon a Reddit thread and it set alarms bells ringing.

It really shouldn't need your advisor, solicitor or lender to say "don't take out extra credit while you are getting a mortgage".

Having said that, it isn't the first time your situation has come up on these boards so perhaps it isn't so obvious to everyone.

As far as I can recall, they all worked out fine.  Next time, just wait until after you've moved in though?  Waiting an extra few days for your sofa is easier than the stress.

Just to add, it should need our advisor and/or solicitor to say this, as that's what they're paid for. My wife and I have £2,500 left as cash to save/spend once we're done paying to survive for the month. Like I said, an extra £100 a month between us isn't exactly going to see us struggling to pay our mortgage so we didn't even really think about it. Our mortgage payments will be exactly the same as our rent, so we know what we can and can't afford.

And also, we have been saving up before moving, for years and years! This is literally the first two items in our lives we've put on credit. If failing to complete costs us more than the deposit then we might as well just find the nearest tall building...

seriously if you have £2.5K left at the end of the month, why did you get credit for these items?

Because our cash flow at the moment is incredibly small after paying for all the expenses that come with buying a property. We wanted to have nice things after living in rentals for the last 10 years and living on other people's !!!!!! furniture. Paying £150 a month for new sofas, mattress, fridge and carpet seemed a lot more sensible to us than paying £5k upfront (which would take us months to save). The house needs some TLC.

sorry I don't quite understand - if you have 2.5K left as cash to spend / save at the end of each month then it would have only taken 2 months to save up the £5K for all the things you wanted to put into the new house

I'm sorry, I don't quite understand how you don't understand. We don't want to live on boiled rice for 2 months and we also want to start building a savings pot again. Surely you can see the logic in paying £150 a month for 9 months over £5k in one whack? I'm baffled how someone with 6k posts on a money forum cannot see the logic to buy a few things on interest free finance.

Dumbo1986

Mr.Generous said:

Just a handy hint, when you say rent is same as the mortgage so you know you can afford it - ownership brings a few extra costs along. How much did you spend on maintenance and building insurance when renting? Boiler repairs? electrical repairs? Furniture and flooring replacements? If the boiler failed or the roof leaked you had the hassle of calling the landlord, not the costs to fix. A replacement boiler just cost me £2500 in a renter. A roof repair thankfully only £600.

Yes, fair enough. Which is why we're buying a few things on finance and want to build up a savings pot again. We're not buying a car costing us £1k a month, we've bought a sofa and a mattress for £100 a month. The boiler is quite new and been serviced every year so hopefully ok for a while. Furniture and flooring is literally what we're buying.

Dumbo1986

WellKnownSid said:

My daughter (FTB) has just had her thick report from the solicitors through.  In it, it clearly talks about the risks around completion if circumstances change, spelling out credit checks and other things.

She didn't need that though - I had already drilled into both of them NO SPENDING between mortgage application and completion and they've been very well behaved   As others have said - it will probably be fine but it's not guaranteed to be fine - it's careless, so put a stop to all unnecessary spending.

We picked up a lovely wood and leather sofa when we moved into our current place from a British Heart Foundation furniture shop £80 delivered.  Every visitor we have is jealous of it, it was probably £6k new.  We don't bat an eyelid when the cats are sick over it.

We did get given a 150 page report before exchange and perhaps I missed it in there... we just wanted to treat ourselves after sitting and laying on awful furniture for the last 5+ years.

Flugelhorn

Dumbo1986 said:

Flugelhorn said:

Dumbo1986 said:

Flugelhorn said:

Dumbo1986 said:

BarelySentientAI said:

Dumbo1986 said:

What’s incredible is that my advisor nor my solicitor said anything about making any purchases on credit in the interim. I checked my mortgage offer from Nationwide and it doesn’t say anything either. By some dumb luck I stumbled upon a Reddit thread and it set alarms bells ringing.

It really shouldn't need your advisor, solicitor or lender to say "don't take out extra credit while you are getting a mortgage".

Having said that, it isn't the first time your situation has come up on these boards so perhaps it isn't so obvious to everyone.

As far as I can recall, they all worked out fine.  Next time, just wait until after you've moved in though?  Waiting an extra few days for your sofa is easier than the stress.

Just to add, it should need our advisor and/or solicitor to say this, as that's what they're paid for. My wife and I have £2,500 left as cash to save/spend once we're done paying to survive for the month. Like I said, an extra £100 a month between us isn't exactly going to see us struggling to pay our mortgage so we didn't even really think about it. Our mortgage payments will be exactly the same as our rent, so we know what we can and can't afford.

And also, we have been saving up before moving, for years and years! This is literally the first two items in our lives we've put on credit. If failing to complete costs us more than the deposit then we might as well just find the nearest tall building...

seriously if you have £2.5K left at the end of the month, why did you get credit for these items?

Because our cash flow at the moment is incredibly small after paying for all the expenses that come with buying a property. We wanted to have nice things after living in rentals for the last 10 years and living on other people's !!!!!! furniture. Paying £150 a month for new sofas, mattress, fridge and carpet seemed a lot more sensible to us than paying £5k upfront (which would take us months to save). The house needs some TLC.

sorry I don't quite understand - if you have 2.5K left as cash to spend / save at the end of each month then it would have only taken 2 months to save up the £5K for all the things you wanted to put into the new house

I'm sorry, I don't quite understand how you don't understand. We don't want to live on boiled rice for 2 months and we also want to start building a savings pot again. Surely you can see the logic in paying £150 a month for 9 months over £5k in one whack? I'm baffled how someone with 6k posts on a money forum cannot see the logic to buy a few things on interest free finance.

why wouldn't I buy on credit?  because there is no such thing as a free lunch... or for that matter free finance! As you are now finding out.. 

sorry I misunderstood about having £2.5K spare to save or spend at the end of the month - I assumed this was genuinely spare and not needed for any other day to day expenditures 

propertyhunter

This thread is not going to help the OP if we keep discussing the fact the decision was not a good one when they know this. If they recalculate the affordability, and you do indeed have £2500 in headroom/disposable income, you have to hope the underwriter will be understanding. They should see the borrowing is for £5k on the credit report and typically what it is for. 

It depends on whether you have a final credit check before completion - I had to ask the bank I was getting a mortgage with a while back about this because I had my identity stolen before completion and was worried about the implications. They said they don't normally do a credit check, unless they have a reason to do so (change of circumstances brought to their attention). 

ecraig

Dumbo1986 said:

Flugelhorn said:

Dumbo1986 said:

Flugelhorn said:

Dumbo1986 said:

BarelySentientAI said:

Dumbo1986 said:

What’s incredible is that my advisor nor my solicitor said anything about making any purchases on credit in the interim. I checked my mortgage offer from Nationwide and it doesn’t say anything either. By some dumb luck I stumbled upon a Reddit thread and it set alarms bells ringing.

It really shouldn't need your advisor, solicitor or lender to say "don't take out extra credit while you are getting a mortgage".

Having said that, it isn't the first time your situation has come up on these boards so perhaps it isn't so obvious to everyone.

As far as I can recall, they all worked out fine.  Next time, just wait until after you've moved in though?  Waiting an extra few days for your sofa is easier than the stress.

Just to add, it should need our advisor and/or solicitor to say this, as that's what they're paid for. My wife and I have £2,500 left as cash to save/spend once we're done paying to survive for the month. Like I said, an extra £100 a month between us isn't exactly going to see us struggling to pay our mortgage so we didn't even really think about it. Our mortgage payments will be exactly the same as our rent, so we know what we can and can't afford.

And also, we have been saving up before moving, for years and years! This is literally the first two items in our lives we've put on credit. If failing to complete costs us more than the deposit then we might as well just find the nearest tall building...

seriously if you have £2.5K left at the end of the month, why did you get credit for these items?

Because our cash flow at the moment is incredibly small after paying for all the expenses that come with buying a property. We wanted to have nice things after living in rentals for the last 10 years and living on other people's !!!!!! furniture. Paying £150 a month for new sofas, mattress, fridge and carpet seemed a lot more sensible to us than paying £5k upfront (which would take us months to save). The house needs some TLC.

sorry I don't quite understand - if you have 2.5K left as cash to spend / save at the end of each month then it would have only taken 2 months to save up the £5K for all the things you wanted to put into the new house

I'm sorry, I don't quite understand how you don't understand. We don't want to live on boiled rice for 2 months and we also want to start building a savings pot again. Surely you can see the logic in paying £150 a month for 9 months over £5k in one whack? I'm baffled how someone with 6k posts on a money forum cannot see the logic to buy a few things on interest free finance.

Your maths don’t make any sense. 

£150 pm for 9 months is £1350. 

Where’s does this £5k come from?