Should we accept Home Improvement loan after exchange before completion?

Simon_gloster

I doubt it would have been audited in the beginning, maybe underwritten.

The back office tracking/financial crime/laundering systems that lenders have at chief offices is staggering. They can run reports on everything mortgage related every minute of the day if they wanted. People get paid to ensure things like what your considering are stopped.

Entirely up to you, but should they withdraw your offer post exchange you'll be in a bit of financial bother.

There would be no grounds either to moan at Halifax, you'll just have to find other lender, if you can.

shannon_brown

Now couple of months later we have successfully did completion and moved into our new flat!!!
Couple of months ago we were in dilemma, weather to got for for it or not because we were quite desperate we had made 3, 4 application for home improvement/personal loans and we were worried it could have ruin our credit score.
But after some research I have found out that about only 7% of your credit score is made of previous searches rest of your credit score is depended on things like how many financial commitments you have, how many repayments have you missed, electoral roll registration etc. & largest portion of your credit score some say about 70% is depended on how good have you been with that particular lender in past if you have had any financial commitments from them in past!!!
And my husband had a £1,900/- personal loan from Halifax which he paid it off without any miss payment and took a top-up loan of £10,000/- over the period of 5 years which he paid off in Jan. 2011 without any miss payment!!!
I must say people on here are very informative but they scared me and we were on the brink of pulling out!!! But I guess I did right thing to search it on different forums and website before making our decision to go for it and took the risk and it paid off!!!! :-)
I just want to say thank you to all of you who got involved in this thread!! xXx

MagicCats

shannon_brown wrote: »

Now couple of months later we have successfully did completion and moved into our new flat!!!
Couple of months ago we were in dilemma, weather to got for for it or not because we were quite desperate we had made 3, 4 application for home improvement/personal loans and we were worried it could have ruin our credit score.
But after some research I have found out that about only 7% of your credit score is made of previous searches rest of your credit score is depended on things like how many financial commitments you have, how many repayments have you missed, electoral roll registration etc. & largest portion of your credit score some say about 70% is depended on how good have you been with that particular lender in past if you have had any financial commitments from them in past!!!
And my husband had a £1,900/- personal loan from Halifax which he paid it off without any miss payment and took a top-up loan of £10,000/- over the period of 5 years which he paid off in Jan. 2011 without any miss payment!!!
I must say people on here are very informative but they scared me and we were on the brink of pulling out!!! But I guess I did right thing to search it on different forums and website before making our decision to go for it and took the risk and it paid off!!!! :-)
I just want to say thank you to all of you who got involved in this thread!! xXx

You and are missing the point.

Yes, credit searches pull down your score. However your dilemma was not about your score being pulled down, it was about a mortgage offer being withdrawn due to applications post offer.

Imagine the following: applicant applies and is accepted for a mortgage of £100,000 based on their current salary, credit commitments and affordability checks.

After this they apply for, and accept unsecured borrowing of £25,000.

This additional borrowing may mean that under their mortgage providers rules on affordability they cannot afford the mortgage. They are within their rights to withdraw the offer. Worse still, let's imagine they get the mortage and loan and six months down the line cannot afford both. They default and lose the house etc.

You really need to appreciate the difference between searches lowering a credit score, and borrowing lowering affordability and therefore mortgage offers.

On one hand I'm pleased for you. On the other however your 'advice' may lead to tears for someone.

DVardysShadow

shannon_brown wrote: »

Now couple of months later we have successfully did completion and moved into our new flat!!!
Couple of months ago we were in dilemma, weather to got for for it or not because we were quite desperate we had made 3, 4 application for home improvement/personal loans and we were worried it could have ruin our credit score.
But after some research I have found out that about only 7% of your credit score is made of previous searches rest of your credit score is depended on things like how many financial commitments you have, how many repayments have you missed, electoral roll registration etc. & largest portion of your credit score some say about 70% is depended on how good have you been with that particular lender in past if you have had any financial commitments from them in past!!!
And my husband had a £1,900/- personal loan from Halifax which he paid it off without any miss payment and took a top-up loan of £10,000/- over the period of 5 years which he paid off in Jan. 2011 without any miss payment!!!
I must say people on here are very informative but they scared me and we were on the brink of pulling out!!! But I guess I did right thing to search it on different forums and website before making our decision to go for it and took the risk and it paid off!!!! :-)
I just want to say thank you to all of you who got involved in this thread!! xXx

The thing you call 'your credit score' is meaningless. You do not know any credit score which matters, you only get to see the one which the Credit Referencing Agencies sell you. But anyone giving you credit does not use the Credit Referencing Agencies' scores, they use their own, where the weighting factors are tailored to the type of credit you are taking.

In the case of mortgages, I would say that searches for credit applications between Mortgage Offer and Completion would be likely to be scored quite heavily

kingstreet

we were quite desperate we had made 3, 4 application for home improvement/personal loans

Potential mortgage suicide.

I reiterate to anyone reading this thread. Do NOT apply for ANY further credit between applying for a mortgage and the mortgage completing.

Doing so risks you having your mortgage offer withdrawn as a result of an audit carried out later in the process.