Quick mortgage question
Discussion
Hi all,
I'm hoping someone better informed than myself could help me with something
We've had our full mortgage offer through, valid until October.
A big bill has come up and as much as I'd like to avoid it, I may need to stick around 2k on my credit card. (Existing card with big limit, no application necessary)
The last 2 times I had a mortgage application go through, Halifax have repeated another hard credit search just before completion. We are going with the same lender this time.
Is this likely to jeopardise our mortgage offer at all? I will of course do my best to clear it between now and then or as much as possible anyway.
Just wondered what the final check is for, perhaps its a non issue.
Thanks in advance
I'm hoping someone better informed than myself could help me with something
We've had our full mortgage offer through, valid until October.
A big bill has come up and as much as I'd like to avoid it, I may need to stick around 2k on my credit card. (Existing card with big limit, no application necessary)
The last 2 times I had a mortgage application go through, Halifax have repeated another hard credit search just before completion. We are going with the same lender this time.
Is this likely to jeopardise our mortgage offer at all? I will of course do my best to clear it between now and then or as much as possible anyway.
Just wondered what the final check is for, perhaps its a non issue.
Thanks in advance
Clappedoutvolvo said:
Hi all,
I'm hoping someone better informed than myself could help me with something
We've had our full mortgage offer through, valid until October.
A big bill has come up and as much as I'd like to avoid it, I may need to stick around 2k on my credit card. (Existing card with big limit, no application necessary)
The last 2 times I had a mortgage application go through, Halifax have repeated another hard credit search just before completion. We are going with the same lender this time.
Is this likely to jeopardise our mortgage offer at all? I will of course do my best to clear it between now and then or as much as possible anyway.
Just wondered what the final check is for, perhaps its a non issue.
Thanks in advance
The final check is for this very issue, to check if your position has changed.I'm hoping someone better informed than myself could help me with something
We've had our full mortgage offer through, valid until October.
A big bill has come up and as much as I'd like to avoid it, I may need to stick around 2k on my credit card. (Existing card with big limit, no application necessary)
The last 2 times I had a mortgage application go through, Halifax have repeated another hard credit search just before completion. We are going with the same lender this time.
Is this likely to jeopardise our mortgage offer at all? I will of course do my best to clear it between now and then or as much as possible anyway.
Just wondered what the final check is for, perhaps its a non issue.
Thanks in advance
Whether it affects you will depend on how tight your affordability is for the loan amount you are applying for......
Edited by Sarnie on Saturday 8th April 22:36
Be careful.
Mate just had Halifax being complete morons because his missus paid for something to be shipped from the States on a credit card to get protection, it was only £450.
They were only mortgaging £80k against their home, which is going to be £600k or so.
It was a proper mess for a few days. It is now sorted, but it caused real issues. So I would speak to them. It was probably a case of someone there who really didn't see the bigger picture.
Once they escalated it, it was sorted.
Mate just had Halifax being complete morons because his missus paid for something to be shipped from the States on a credit card to get protection, it was only £450.
They were only mortgaging £80k against their home, which is going to be £600k or so.
It was a proper mess for a few days. It is now sorted, but it caused real issues. So I would speak to them. It was probably a case of someone there who really didn't see the bigger picture.
Once they escalated it, it was sorted.
This is another situation that shows how much better it is to use a good broker, than trying to do it yourself.
A good broker, can check the affordability for you, he can talk about the case with his BDM from the mortgage company if necessary and the BDM can then discuss direct with the underwriter, again if necessary.
Not only that but if it is essential to pay that bill and create a credit card debt and if that is going to be an issue, he can advise of another lender, because they all have different affordability calculations, or it may be a simple matter of tweaking the existing application to increase the term, as this will affect the affordability as well. So maybe increase term to 35 years, to make it fit with affordability, but then once mortgage is open make overpayments each month to bring it inline with desired term.
A good broker, can check the affordability for you, he can talk about the case with his BDM from the mortgage company if necessary and the BDM can then discuss direct with the underwriter, again if necessary.
Not only that but if it is essential to pay that bill and create a credit card debt and if that is going to be an issue, he can advise of another lender, because they all have different affordability calculations, or it may be a simple matter of tweaking the existing application to increase the term, as this will affect the affordability as well. So maybe increase term to 35 years, to make it fit with affordability, but then once mortgage is open make overpayments each month to bring it inline with desired term.
Different lenders take different views but >30% available credit being used is often a flag to them.
Obviously it depends what the existing credit file/score looks like, and if there are any negative flags on file. As mentioned by other posters it's worth speaking to a broker (they usually have access to better deals, even if remortgaging with the same provider).
Obviously it depends what the existing credit file/score looks like, and if there are any negative flags on file. As mentioned by other posters it's worth speaking to a broker (they usually have access to better deals, even if remortgaging with the same provider).
Sarnie said:
Thats a different scenario, timings wise.........
Possibly.. I ended up having to put the mortgage valuation fee, the solicitors down-payment for the searches, and the survey fee on my CC which I paid off on completion, but they did do a hard search again just before exchange and completion happened. If its a problem OP, you could try clearing your CC statement balance when you get paid with your spending/food shop/petrol money so it resets to zero, then putting your months spending on it, this way it won't register on your credit score. Or if you have a second CC then perform a cleverly timed balance transfer, or combination of both. Just a couple of tricks to avoid it looking like you have CC debt until you're in the new place and get it over the line.
Not an ideal scenario but might help if as the other posters say you are close to the affordability limit.
Edited by Raymond Reddington on Monday 10th April 11:49
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