Urgent advice needed

Puma21_2

Dear all,

I need some urgent advice. Essentially we have just applied for a mortgage with First National Homes. I have adverse credit in my file. We were informed yesterday that they have giving us an offer in principal and have instructed a valuation. I have checked my Experian file and have done a full credit search prior to offering us this offer in principal tuesday.

I have a £2000 overdraft which I am always in. HSBC have offered me a loan to clear it and start fresh (cancel the overdraft). I do need to do this as due to saving for the deposit I am really tight for money. The problem is that the offer from HSBC was only valid for 14 days...that is up tommorrow.

If I take the loan will this cause problems with my mortgage offer? Will they/do they do another credit check after offering the agreement in principal and completing the first credit search? Will it matter if it shows a new accoung for £60 a month??

Thank you for your help.

epsilondraconis

Ask HSBC to extend the offer if you think the HSBC loan route is the way to go.

I imagine they will because they will be hoping that you fill up your overdraft again and also have a loan with them.

Puma21_2

Thank you...any other advice??

17Dave

Unlikely they will do a new credit search - but in the current climate not impossible - some lenders are withdrawing offers. So I agree - ask HSBC to extend.

Puma21_2

But do you think they will mind if it is only for an extra £60 a month? How long does it take for a loan agreement to appear on my credit files?

17Dave

If HSBC have already agreed the loan chances are there is already a search on your record. First National could look at taking £720 off your income before calculating what to lend you so if income is tight it could make a difference. Also did you declare the overdraft on your application? If so the loan is less likely to cause a problem.
Searches and new credit deals appear on your credit record very quickly if the admin people do their job.

Puma21_2

Hi Dave,

Not declared as they did not ask about it.

Income is good...we are looking to borrow about 3x joint salary. HSBC's credit check appeared before First National did one, so they would of seen it. But surley mortgage companies must know people have to borrow money to buy furniture etc?

What do you think?

Puma21_2

What do you think Dave?