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mortgage gone to underwriters, panicking now

edited 30 November -1 at 1:00AM in Mortgages & Endowments
8 replies 1.6K views
lucylooby123lucylooby123 Forumite
51 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
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:

Replies

  • ThrugelmirThrugelmir Forumite
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    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.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • 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.
  • ThrugelmirThrugelmir Forumite
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    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.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • But it wasn't a credit application, it was a transfer of long standing savings into two ISAs. Am I being especially thick? :o
  • ThrugelmirThrugelmir Forumite
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    But it wasn't a credit application, it was a transfer of long standing savings into two ISAs. Am I being especially thick? :o

    On receiving your application you would have been thoroughly credit checked by the lender. A basic first step in the application process.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • the transfer of money into ISAs took place this month, after the AIP. So understandably we're now worried
  • PaulLukePaulLuke Forumite
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    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.
  • kingstreetkingstreet Forumite
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    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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