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

MWT

Nobody here can offer advice that you can rely on, and anything anyone says about what Nationwide might do or when is pure speculation as well unfortunately.

If it was me, I would cancel the credit (and the order if possible/necessary), the stakes are too high to just roll the dice. 

Still doesn't guarantee safety, but it is a lot better to have your broker equipped to answer a query if it comes in with the fact it was an accident and was promptly cancelled, rather than leaving them obliged to tell the lender you've taken additional credit...

 

Dumbo1986

MWT said:

Nobody here can offer advice that you can rely on, and anything anyone says about what Nationwide might do or when is pure speculation as well unfortunately.

If it was me, I would cancel the credit (and the order if possible/necessary), the stakes are too high to just roll the dice. 

Still doesn't guarantee safety, but it is a lot better to have your broker equipped to answer a query if it comes in with the fact it was an accident and was promptly cancelled, rather than leaving them obliged to tell the lender you've taken additional credit...

 

Yes, I think that is what I'll do today. There's the 14 day cooling off period which I'm only on day 9 of, and I think it's the safest option. Thanks.

Dumbo1986

Update (if anyone is interested!). Spoke to my mortgage adviser just now. I think we're going to be bold and be upfront with Nationwide about what we've done and await their decision. She said it could take 3 working days to hear back from them. Nationwide were prepared to offer us £400k back in March and we are taking £370k for the mortgage, and she thinks that's enough of a buffer to get a favourable answer.

We're also going to pay the mattress off now leaving us with £1,600 credit spread over 3 years at £50 a month. 

She said if they pull the offer then we can look for a new mortgage offer and the completion date will just get put back (without financial penalty to us which I'm not sure I believe). 

The other option is cancel the finance, don't tell Nationwide, and hope they don't do a check on us. And if they do, then we have to explain why we took out credit and then cancelled it, and this could all be done on completion day leaving us with little time. 

I'd rather be upfront and honest about it now.

BarelySentientAI

FWIW, I think being upfront is right and the numbers aren't tight enough for it to be an issue.

Dumbo1986

BarelySentientAI said:

FWIW, I think being upfront is right and the numbers aren't tight enough for it to be an issue.

I hope so. Going to be a tense 72 hours but I feel calmer having spoken to her and having made a decision. She said when they submit this sort of info they paint a picture to try to give the underwriter as much info as possible. She said we can cancel it/have friends and family help pay it off if it's an issue for Nationwide. Hoping it isn't. 

Never doing anything like this ever again. I'll update when I get more info (I'm sure someone at some point will do what I did and this thread might help them, I hope).

Flugelhorn

Dumbo1986 said:

She said if they pull the offer then we can look for a new mortgage offer and the completion date will just get put back (without financial penalty to us which I'm not sure I believe). 

I would be wary believing that - only time it might not cost you very much is if there is no chain beyond the house you are buying  and you pay the specified interest for not completing as per the contract

The big problem is you are in any chain is that you become liable for other people's costs eg amended removals, interest payable for not completing etc

Hopefully you are buying somewhere empty  / new build

Dumbo1986

Flugelhorn said:

Dumbo1986 said:

She said if they pull the offer then we can look for a new mortgage offer and the completion date will just get put back (without financial penalty to us which I'm not sure I believe). 

I would be wary believing that - only time it might not cost you very much is if there is no chain beyond the house you are buying  and you pay the specified interest for not completing as per the contract

The big problem is you are in any chain is that you become liable for other people's costs eg amended removals, interest payable for not completing etc

Hopefully you are buying somewhere empty  / new build

Umm, nope. The people who's house we're buying are buying somewhere. That's the end of the chain though.

We just have to hope Nationwide are sensible and allow us an extra £50 a month expense.

Dumbo1986

Well, talk about last minute. My solicitor ended up getting on the phone with Nationwide this afternoon and they confirmed that they're happy to continue and will release the funds tomorrow. 

I've been staring at my phone all day waiting for a message to come through. 

Mortgage advisor has been pretty useless the last few days to be honest, which has been disappointing. Not much urgency from them. 

I've never been so relieved in my life. People, do not buy things on credit before you complete.

Better be the best damned mattress I've ever slept on.