mortgage and taking out finance before completion on shared ownership property

stressed_stressed

I have been accepted by Kensington bank to lend money for my mortgage on 2 bed shared ownership property I have gone for. I have a formal offer for the house but completion isn't until the mid august so the bank have not released the funds yet. I stupidly took out a big finance on furniture for over 4 k 3 years 0 percent finance at approx. 127 pound a month. I was advised strongly against this before funds are release as it may make the bank back out if they do another hard search before releasing the funds. Therefore, have cancelled the finance (the payments were not active)but the hard search will remain on my file with the amount i took out. could this still effect my mortgage even though my monthly outgoings and commitments are still the same because I cancelled it and the hard search only dropped my score down by approx. 7 points? I am so unbelievably stressed, especially as my broker is on annual leave at the moment. I am also aware of how stupid i am for doing this in the first place.

la531983

Doesnt matter what the score is, nobody sees it.

If you are using a lender like Kensington you must be on the ragged edge of affordability anyway, they are a sub-prime lender, so its entirely possible them seeing this lending could have an implication.

RelievedSheff

We had a mortgage with Kensington a while back now and they are a lender that does carry out a second credit search before releasing the mortgage funds so they will see the additional credit search on your file.

Whether or not it affects your case will depend on many factors but will include how close on the affordability calcs your case is.

Kensington are a sub prime lender so there is presumably a reason you are using them? In which case is it really a good idea to be taking on more credit alongside a new mortgage?

stressed_stressed

i have cancelled the finance. the payments were not active. I haven't missed a payment in 3 years and i am on over 42k a year. Only reason i had to go with them is due to a default that is still on my record from 3 years ago when i was at university.

RelievedSheff

I assume there must be more in the detail because going with Kensington for a 3 year old default feels like a bit of overkill!!

mta999

Also (and I am sure you have probably done this) make sure you know what you're getting into with shared ownership, particularly your exposure to service and other charges

Google is your friend

kingstreet

Normal advice is to make no applications for finance of any kind during the application process and that really means from decision in principle to completion.