New mortgage application and new direct debit required

[NIsense]

Hi.
I am in the process of selling my house to buy another. To avoid problems with removals later, I am considering placing a lot of my stuff in storage leaving little to do on completion/moving day. Anyway, I may to reapply for a mortgage again as it's running out. The storage costs would be paid by direct debit. Does anybody thing taking out another direct debit for storage would affect my credit score and therefore new mortgage application? This is painful. Help is appreciated.

It could do, it depends a) how much the direct debit would be and b) how close to your affordability limit you are. Not sure if there is any way you can find out the definite answer to b) but you can estimate using online calculators?
If you’re using a broker you could ask them what they think. A direct debit of perhaps £30 a month is probably not going to make much difference (and I would argue that if adding £30 a month to your outgoings means that your mortgage is rejected then you are borrowing too much). But if it’s more like £300 then yes it could very well have an impact.

@Bobbots

It could do, it depends a) how much the direct debit would be and b) how close to your affordability limit you are. Not sure if there is any way you can find out the definite answer to b) but you can estimate using online calculators? If you’re using a broker you could ask them what they think. A direct debit of perhaps £30 a month is probably not going to make much difference (and I would argue that if adding £30 a month to your outgoings means that your mortgage is rejected then you are borrowing too much). But if it’s more like £300 then yes it could very well have an impact.

Hi, thanks for the quick reply. £65 per month, and is easily affordable. At least that's my view anyway.

General advice is to take no new lines of credit down when a mortgage application is underway (i.e. before completion).

Are you able to pay any deposit in cash then pay by bank transfer rather than DD? Don't put it on credit card for the same reason as above - your credit card balance increasing will be considered "undeclared liabilities". You should be careful around using your credit card between mortgage approval and completion for the same reason.

In any event, be careful also that the storage unit don't do a "hard search" on your credit report as this could flag to your mortgage lender as a change before completion.

Do note that if you sign on for a committed period, technically this should be declared with a mortgage application as a financial commitment or "anything you wouldn't want to give up".