Credit Use after mortague application or approval?

jjbrien

My partner and I are buying a shared-ownership home and have been offered a decision in principle for a mortgage with Darlington Building Society. Since we are first-time buyers, we have never been through this process before for a mortgage. We are unsure about using our credit card or applying for credit when the mortgage offer is done and are waiting for completion. The issue we are facing is that the house is a new build, so there is zero flooring, and we need to sort that. We are getting quotes from local places from 2.5k to 5k. When would it be safe to use a credit card or apply for one of those 0% deals on flooring that the flooring places offer? I have a lump sum coming to me later in the year, which would clear it, but I don’t want to be walking around with no flooring.

ACG

Does it pass affordability with a £2.5k - £5k credit card balance? 

jjbrien

ACG said:

Does it pass affordability with a £2.5k - £5k credit card balance? 

It should do yes but I do want to try avoid any mess ups. 

TheSpectator

jjbrien said:

ACG said:

Does it pass affordability with a £2.5k - £5k credit card balance? 

It should do yes but I do want to try avoid any mess ups. 

Simple answer to avoid any risk is wait till the mortgage is done and dusted.

amnblog

jjbrien said:

I don’t want to be walking around with no flooring.

Why not? Get used to costs with your own home. Either keep borrowing to pay for things and get in a hole, or buy what you can afford.  You can probably get a couple of offcuts from a local shop for a few quid to fill the gap until you can get the flooring done properly without credit.

With regard to credit or credit cards, the answer is a NO until after completion.

ACG

Ordinarily, if you are going with a high street lender, I would agree - no borrowing until after you complete. 
However, with this being a building society I think it is a little bit different. There is an element of underwriters discretion, but the main bit is whether or not it passes affordability.

I would say hold off to be safe. But its not quite as black and white as it would be with a high street lender.