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Original poster

Mortgage and credit checks

26 replies

UniqueSiren · 31/10/2018 11:22

If I'm applying for a mortgage right now (it's being processed) will buying a chair on finance today go against me?

OP posts:
Whymustyoubringinthebirds · 31/10/2018 11:29

It is likely that it will not show up right now (assuming that the application has been placed or AIP done) but if the mortgage doesn’t complete quickly the lender might have to do an updated credit check and it would show then

Whymustyoubringinthebirds · 31/10/2018 11:30

*and if affordability is tight it would cause problems

Original poster
UniqueSiren · 31/10/2018 11:57

We were refused for no reason that we can see so are appealing. Is it a bad idea to do this. I'm also a SAHM at the moment with no income (I can afford the repayments on the chair though)

OP posts:
flamingofridays · 31/10/2018 12:01

what were you refused for the mortgage or the chair?

it wont be for no reason, even if you think its not a good reason, the company will.

have you gone through a broker (providing we are talking about the mortgage that has been refused!)

NotSuchASmugMarriedNow1 · 31/10/2018 12:31

I'm not sure you can appeal a mortgage rejection. What appeal process are you following?

Whymustyoubringinthebirds · 31/10/2018 12:47

If you have been refused a mortgage they should be able to give you a broad reason as to why it has been declined ie affordability, unacceptable credit etc...
You should be able to appeal but most places would want a good reason as to the appeal so new information that would go against the decline reason
Appealing should not effect your credit file

Original poster
UniqueSiren · 31/10/2018 12:53

Yes, we went through a broker. We were refused the mortgage but we think it's an error so the bank/building society told DH to appeal and it won't go through an algorithm, a real person will review it. There is genuinely no reason it could be, DH is most anal about money matters (and earns a lot).

OP posts:
Original poster
UniqueSiren · 31/10/2018 12:54

So it's OK for me to order the chair? I'm worried that it will be refused now - that will affect the mortgage won't it? (as you can prob tell, DH & I are chalk & cheese)

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flamingofridays · 31/10/2018 13:59

I wouldn't apply for any credit between now and your mortgage being approved to be honest.

Original poster
UniqueSiren · 31/10/2018 14:05

Sad OK

OP posts:
OrlandoTheMarmaladeCat · 31/10/2018 14:07

Talk to your broker. If there is plenty of headroom within the affordability, then it's a possibility but ultimately you risk losing the mortgage due to a chair - would you be comfortable with that?

flamingofridays · 31/10/2018 14:09

what did the broker say about the mortgage refusal?

did you have an agreement in principle?

also, not to pry but it maybe relevant! if your dh earns a lot why are you applying for credit for a chair? are your outgoings especially high? this may be why your mortgage was declined.

you could earn millions, but if your outgoings are also millions you still might be declined.

SoyDora · 31/10/2018 14:10

Do you need the chair at this moment? I’d leave it until the mortgage is sorted.

adaisy1394 · 31/10/2018 14:15

I really wouldn't, the lender can carry out additional credit checks on you at any time right up to the point of completion and withdraw the offer if the deem necessary, the fact your application is now going in front of a person probably means they will be more rigorous and taking out credit at a time like this would possibly ring bells for them. At their end they wont see what it is or even how much, just that you felt the need to seek an additional line of credit.

I think it would be more sensible to just live without the chair until your mortgage is set or if you DH earns so much... buy it out right?

Original poster
UniqueSiren · 31/10/2018 14:16

They have just come back and we have now been accepted for the mortgage - very strange. I don't know if I fully trust the mortgage broker tbh - that was a very very short time for an 'appeal' to go through (like 2 hours?). I can't see any reason for them to be dodgy about it though, they get more money now we've been accepted. I don't know Hmm
Maybe it was their error (the broker) and they didn't want to admit it.

Anyway, I can buy my chair now can't I? Grin (It's a beautiful chair)

OP posts:
Original poster
UniqueSiren · 31/10/2018 14:20

When I say DH earns a lot, I mean for repayment terms and the value of the house - we don't have a lot of money, I can't work right now.

Anyway - just clarifying that it wasn't a boast. And it's an expensive, beautiful chair so I'm paying a decent deposit and paying the rest over a year.

OP posts:
SoyDora · 31/10/2018 14:22

Do you really need an expensive, beautiful chair if you don’t have lots of money and can’t currently work?

Whymustyoubringinthebirds · 31/10/2018 20:49

Sometimes appeals get done supper quick to shut brokers up 😂
If you plan to complete in the next 4 weeks I would get the chair 😊

Original poster
UniqueSiren · 31/10/2018 22:16

Thanks for your help guys! I will have a mortgage and a chair Glitterball

OP posts:
Leedsbean · 31/10/2018 23:57

Mortgage providers can do checks up until completion even where they have provided a mortgage offer. If there is a material change post offer they can subsequently withdraw it and taking finance out which was not declared can cause this. Can you not wait until completion to get the chair?

Original poster
UniqueSiren · 01/11/2018 00:12

What is the big deal about buying a chair though (to a bank I mean)?

There was clearly an error in refusing us the mortgage so why would me buying a chair and paying for it on 0% interest (so I have extra actual cash for Christmas) be detrimental to a credit score/report? I don't understand. Financial stuff baffles me.

And it's me buying the chair, for myself, not DH. And why would anyone think to ask if I really need the chair Grin

OP posts:
Original poster
UniqueSiren · 01/11/2018 00:14

I guess I can wait until completion but it has to be made and it will take a long time as it is. I'd like it for Christmas (if not before!).

OP posts:
Original poster
UniqueSiren · 01/11/2018 00:17

Oh wait sorry, it might be seen as finance taken but not declared. Like I might've applied for finance the minute I thought the mortgage was a done deal? To be deliberately sneaky? I can't really see a point in that but I guess it makes a little sense.

Do they really think like that? Even if I can afford it and have never had a problem paying back credit before?

OP posts:
SoyDora · 01/11/2018 05:46

And why would anyone think to ask if I really need the chair grin

Confused sorry, was just trying to help. Used to work for a bank.
Won’t nother next time!

SoyDora · 01/11/2018 05:47

*bother

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