Applying for credit after mortgage offer?

lucasmum

Hi, we have had our mortgage offer and hope to be completed by the end of the month.

We need a new cooker and fridgefreezer, and my catalogue is doing a buy now pay next year so we are tempted to use this to free up a bit of cash for other 'moving' things. I would like to get these now so we have them.

I have read some horror stories on here about people applying for credit after their mortgage offer then it being pulled on the grounds of the extra credit.
It would be about £750 altogether, does anyone think that this would be a problem. Thanks in advance.

jammie*dodger

Can you wait till the end of the month? It'll be a few less things to move to the new house. Then you'll be sure that it's not going to affect the mortgage?

Rob.

Puma21_2

Would it really affect your mortgage offer if you applied for new credit? Sureley it would have to be a new credit agreement that dramatically increased your monthly outgoings?

Cazza

Depends if having £750 would affect the amount you can borrow or not. If it will, then don't do it, you run the risk of having the mortgage offer withdrawn or reduced. If it doesn't, then don't worry, it'll be fine. Before you do anything, check with the mortgage adviser and they should be able to tell you!

lucasmum

Should I just ring halifax and ask them? I am a bit wary of this coz every time I ring up I get told someting different! I don't know if £750 would affect us. we are buying a shared ownership house and with the rules and regs that seem to be coming up I don't want to ruin things with something silly.

Puma21_2

But do they take into account the monthly payments or the whole loan ammount?

Cazza

It'll be the monthly payment.

Tiddler_2

The Halifax is unlikely to do another credit check/score, unless their system changes something. They also ignore any credit commitments which are due to be repaid within the next 12 months.

How much are you borrowing, what are your incomes and what credit do you have (if any) before taking out the loan?

We can then give an idea as to whether or not it will affect the mortgage anyway.

Dan_Collins_2

I would wait if the lending was tight. Nothing would shock me at the mo and although it may be a pain I would wait until you have the cash in the bank if you get my drift!

lucasmum

The only debt we have is a £1000 loan I took out for my sister last year but obviously she gives me the money for that and halifax are aware of that. Apart from that we are debt free.
It will be a pain because we maybe without a cooker and freezer for a week but I'd rather that that lose the house over £750 on a catalogue. Our income is £26,000 + taxcredits etc. and we are borrowing £56,000 so we aren't stretching ourselves too much.
I think Halifax did us a favour when they valued it because they have valued it at £20,000 more than the HA have so in their eyes we don't have the 97% LTV anymore! This meant no higher lending charge so was a great bonus. Also makes me feel slightly better about avoiding negative equity when we remortgage in 2 yrs.

rdsmortgageman

Once the offer is issued, you are normally ok, however I have seen on a couple of occasions where a lender re credit scores at the last minute if there is a change of address or purchase price etc. I would wait until the funds have been drawn down by your solicitor.