Mortgage - credit checks

LOR1984

Hi

i have had my mortgage offer after my survey - do mortgage companies do further checks on people after this stage ?

thanks

Thrugelmir

Spot checks are conducted prior to completion.

LOR1984

what do they check for ?

thanks

Thrugelmir

Change of financial circumstances.

kingstreet

Lenders offer some customers a facility called fast-track. This is a reward for having a lower loan to value and high credit score. It means they normally don't ask for evidence of income, or employment, or proof of deposit.

To counter the possibility of fraud, around 8%* of cases are pulled for audit between offer and completion. If this happens, all the items you avoided sending are requested, as can others, such as additional credit checks and references.

Brokers have to obtain everything up front, so we tend to have it all available to send, but it can be disconcerting to the average direct borrower when they are suddenly asked for payslips, bank statements, proof of deposit, explanations for payments, employer's references etc.

We've had cases on here where an audit has been triggered by the solicitor forwarding the report on title at exchange and the borrower has found themself unable to complete because the offer is withdrawn due to an issue discovered at audit.

You'll often find those asking about applying for credit between offer and completion are told to leave it until afterwards to ensure nothing could affect an audit.

*Halifax audits around 1 in 12. Other lenders vary.