Mortgage process

Katg1

Just a quick one. How many times do lenders carry out credit searches from the beginning to the end of the process? I know they can carry them out as many times as they want, however what is the norm?

Gromitt

I though it was roughly 3:

1 for AIP
1 for Mortgage application
1 for Funding request (as it can be upto 6 months later)

Could be completely wrong tho' !

Katg1

Wow thanks, that seems like a lot! really worried about it all

holly_hobby

Generally, 1 x DIP/AIP and 1 on submission of application (or subsequent further advance request).

However, lenders do randomly select cases for a final audit check between offer and completion - if there have been any subsequent adverse amendments to your credit profile flagged up (i.e additional debt, missed payments etc), you may well receive a call/revised offer from them.

Hope this helps

Holly

Wh05apk

Halifax also have a "live" system, which checks all live applications, until completion.

Anything in particular concerning you?

Katg1

Thanks Holly,

Yes there have. I have discovered 3 missed payments for exceeding an overdraft on a dormant account. Interest charges sent me over my limit and no letter was sent out so I did not realise. Do you think I should inform my mortgage lender?

Thanks for your advice!

Katg1

We are applying to port and increase our mortgage with the coventry

Katg1

Wh05apk thanks to you too!

holly_hobby

Have you settled the os payments ?

I would also submit a letter of complaint to the bank (which will help with your mge app if this rears its head), re their failure to disclose of charges and you having exceeding your agreed od limit.

They may claim if your account is paperless that they don't need to inform you, as you should be monitoring your accout yourself. If it is not a paperless account, they have a duty to advise of pending charges to the account. Keep a copy of the letter for submission to the Coventry.

Whether to divulge or not to Cov., well if you believe that the charges are unwarranted, and that the missed payments are not as a result of your mis-handling of finances - then it may not be a bad idea to give them the heads up on this now. As, if they do conduct a subsequent CRA check, they may class this as non-disclosure and it may foul your app up anyway !

The fact that you are a current Coventry mge holder, means that they have payment history of your mge, and an overall view of your perceived attitude to debt - so as long as this has never been in arrears, it will help.

Have a chat with your broker, he may be more familiar with Coventry uw than I am, I would also get him to speak to an uw and discuss the blip thats now appeared, and how the app may be managed in view of it.

Hope this helps

Holly

Wh05apk

Presumably when you say you have "discovered" these, they are historic? or have they appeared since your application?

Katg1

They appeared after the AIP. I disclosed this to The Coventry this afternoon and they said there hasn't been a problem with the initial underwriting so we fingers crossed should be OK subject to valuation.

Hoping it will all go through OK. At least I have been upfront should it be found to cause a problem further down the line. I will however persue the issue with my bank account provider.

Thank you very much for all your advice.