mortgage gone to underwriters, panicking now

lucylooby123

So after our AIP, and a mix up with paperwork, building society FINALLY got our application.

I've noticed that since OH moved some sums of money from savings to ISAs the banks have credit checked (money laundering checks) and this has brought his credit rating down, so we're annoyed about that!
Anyway, things have been sent from building society to underwriters today, who have requested a letter from accountant to say we're ok financially (OH works for himself), and payment for valuation. They queried bills not being paid by direct debit (paid by debit card instead) and once explained the mortgage broker said they'd be fine with that. Currently only 50% of income monthly is being spent (bills, rent, food) and remainder is being saved for x weeks then moved to ISAs. Mortgage payments would be less than our rent, so think they'll be okay with that?

But totally papping it now... this is everything, the BIG move we've planned for years... and the move we need to make one helluva difference to our daughter's life.

Is this all positive signs? Vendors want to be moved as they've found somewhere, and we just want this over with now. I've never been so stressed and tired in my life! :eek:

Thrugelmir

lucylooby123 wrote: »

I've noticed that since OH moved some sums of money from savings to ISAs the banks have credit checked (money laundering checks) and this has brought his credit rating down, so we're annoyed about that!

You are wishing to borrow a large sum of money. So only right that this should be flagged up to other financial institutions. The credit report is for public use not yours.

lucylooby123

Thrugelmir wrote: »

You are wishing to borrow a large sum of money. So only right that this should be flagged up to other financial institutions. The credit report is for public use not yours.

Do you have any idea why it would have an adverse effect on credit ratings? It was, afterall, a positive thing for which we (he) have seemingly been punished.

Thrugelmir

lucylooby123 wrote: »

Do you have any idea why it would have an adverse effect on credit ratings?

The flag in the system is to warns other lenders and financial institutions. Stops borrowers from abusing the system by making multiple credit applications in a short time window.

The purpose of credit reports is to score you as a risk. So its nothing personal when the score is reduced, its down to business.

lucylooby123

But it wasn't a credit application, it was a transfer of long standing savings into two ISAs. Am I being especially thick?

Thrugelmir

lucylooby123 wrote: »

But it wasn't a credit application, it was a transfer of long standing savings into two ISAs. Am I being especially thick?

On receiving your application you would have been thoroughly credit checked by the lender. A basic first step in the application process.

lucylooby123

the transfer of money into ISAs took place this month, after the AIP. So understandably we're now worried

PaulLuke

Morning,

I'm not sure you have picked up correctly on the previous comments but two things to note.
(a) I'm guessing the credit score you are referring to is the Experian/Equifax score which is of little use other than to the agencies as each lender/creditor has their own way of interpreting credit reports anyway; and
(b) the apparent reduction has nothing to do with moving the money into ISA's but is related to the carrying out of a credit check. In other words the effect on your score would have been the same, irrespective of whether your OH had moved money to the ISA's or not.

kingstreet

Yhe ID/Address check is an "unrecorded enquiry" only visible to you and isn't a credit search. There is no change to your credit worthiness.

Don't get hung up on these "scores" they aren't worth the money you're paying for them.