Second credit search?

hettifield

Hi, we finally managed to secure a mortgage.. We had difficulty getting one because I had a default on my credit report. We thought we'd have to go to a adverse lender but we managed to get one through a high street bank.. We got a mortgage in principle, put an offer on a house which was excepted, our mortgage app went to the under writer who have approved it subject to valuation on the property..

My question is will they do another credit check? I ask because I'm surprised they approve me when other lenders refused in the past. Mortgage advisor said she spoke to the under writer first and told them my situation which is why they approved..

Thanks

Thrugelmir

Why are you concerned about a further credit check?

Yes they are done on a random basis and can result in a withdrawl of the mortgage offer at a very late stage. Leaving the applicant with a major financial headache with a liability to a large potential expense.

r3becca

We are in a similar situation, managed to secure a mortgage when we thought we wouldn't be able to (due to a default in my partners name). Final decision is also currently at the underwriters & a few days ago the fees came out of the bank account for the valuation... Our mortgage adviser said that another credit check will not be carried out as they carry it out before they get to this stage. Once at this stage it is just about checking that the amount the are lending ties in with the amount they value the property to be worth.

holly_hobby

hettifield wrote: »

I ask because I'm surprised they approve me when other lenders refused in the past. Mortgage advisor said she spoke to the under writer first and told them my situation which is why they approved..

Your broker would have spoken to the uw directly or via their lender rep (BDM), and will have discussed the potential issues with your application.

Having reviewed the data provided by your Broker, the underwriter would have used their mandate, which is their autonomy for agreeing a mge advance, on an application which does not meet the lenders std criteria (subject to the app on full underwriting, coming in without any further undisclosed issues).

Therefore, you had in essence already been underwritten in respect of this issue, before submission of your full app. A process that experienced brokers use for any non-std applications - to avoid wasting time in submitting apps that will fail std underwriting checks.

I really would not concern yourself about a subsequent credit check if you were full and open on your application, and there have been no subsequent changes. Yes the lender reserves the right to conduct any status check right up to completion, but if there have been no status changes, then any subsequent checks they may perform should not affect or change their decision to lend.

Hope this helps

Holly