Is a mortgage in principle worth the paper it's written on?

mc2705

I am currently going through the mortgage process. I paid the valuation fee last Friday and they are valuing the flat tomorrow morning. Does this mean that they have now done the "hard credit check" or is that still to come?

Am terrified to spend any money at the moment in case they come back and say they looked at my account and too much money has left it.

AndersLimpar_2

Once the valuation gets to the mortgage supplier then they will then give you the final mortgage offer. The checks have already been done.

Littlemadam83

AndersLimpar wrote: »

Once the valuation gets to the mortgage supplier then they will then give you the final mortgage offer. The checks have already been done.

So they will still charge you for the survey even if they know they are not going to offer a mortgage?

x

mc2705

AndersLimpar wrote: »

Once the valuation gets to the mortgage supplier then they will then give you the final mortgage offer. The checks have already been done.

Ahh ok. So it is all dependant on the valuation now and nothing to do with my finances? If, for example, I went out tonight and spent £4000 on my credit card, it would make no difference?

I am not going to btw, just need to buy some stuff for a couple of peoples birthdays and am paranoid I will ruin the mortgage application if I go overdrawn (not over my overdraft limit, just overdrawn).

AndersLimpar_2

Littlemadam83 wrote: »

So they will still charge you for the survey even if they know they are not going to offer a mortgage?

x

You pay for the survey before its carried out. So whatever the result of the survey is, you have still had to pay for it.
They dont know they are going to decline until the survey is done. The survey ensure's they are making a wise investment.

AndersLimpar_2

mc27051980 wrote: »

Ahh ok. So it is all dependant on the valuation now and nothing to do with my finances? If, for example, I went out tonight and spent £4000 on my credit card, it would make no difference?

I am not going to btw, just need to buy some stuff for a couple of peoples birthdays and am paranoid I will ruin the mortgage application if I go overdrawn (not over my overdraft limit, just overdrawn).

I dont believe any more searches are carried out once the mortgage has been agreed. I could be wrong though, be interesting know if a broker thinks that is correct also....

Littlemadam83

AndersLimpar wrote: »

You pay for the survey before its carried out. So whatever the result of the survey is, you have still had to pay for it.
They dont know they are going to decline until the survey is done. The survey ensure's they are making a wise investment.

Sorry I didnt make myself clear! I mean:

What if they decide they dont like something financial about me after they have done their hard credit checking. Will I still have to pay for the survey fee no matter what their opinion is on whether they will lend me the money based on finances? Or make me pay for the survey and THEN turn me down because my credit history was not what they wanted.

Sorry, and thank you x

AndersLimpar_2

The order of things in my recent FTB case....

Find a house
Mortgage meeting to discuss affordability
Agree price for house
Second mortgage meeting (at which point hard credit checks are carried out)
Survey carried out
Final Mortgage offer
Solicitors faffing about
Exchange
Complete

So i would think in almost all cases a survey is carried out after the morgage credit checks have been done. So you shouldnt find yourself in the position of paying for a survey before you know if you can get the mortgage or not.

Hope that helps.

josievg

The lender may carry out rolling credit checks throughout the purchase from when they make the mortgage offer until they release funds. Our solicitor pointed this out to us in one of the first letters they sent us and warned against increasing credit - spending on cards or taking out loans - during this time. According to what I've read - here and elsewhere on the web - they will almost certainly run a final check before they release the funds.

Littlemadam83

Yes, I did see a post on here about Halifax checking someone's report every day!

This is who I am going through so thanks for the tip on no avid spending