Formal Mortgage Offer - What checks do the lenders do once issued?

MikeyGB313

Hello Everyone

We have been sent our formal mortgage offer after completing the full application and its valid for the next 6 months.

What I am wondering is, do the lenders repeat checks or reference requests when forms are signed for exchanging of contracts?

I ask because my company is restructuring, and although there are no compulsory redundancies planned, I am sure a new reference check may flag as an issue to the lender.

Gentoo365

Legally you would have an obligation to inform them if you were being made redundant, or if your situation (as described in the application) had changed.

However you don't have to inform them of 'possible issues' as that is purely hypothetical and as of now you are employed.

If it takes ages they may do another credit check, and they may ask for your latest bank statement. If your salary is in that statement then all will be fine.

They will do some other 'checks' though, but via your solicitor, but that will be legal stuff regarding the property (i.e. making sure that it is suitable security and there are no odd restrictions)

holly_hobby

You are legally obliged to advise the lender of any material changes to the information upon which your offer was based.

Futhermore, UWs do select random cases for ad hoc status checks right up to completion .... (CRA/credit checks, re-verifying income, etc) in fact there have been a number of threads on here where the OPs offer was revoked, just days and even on the day, of completion .....

So its your choice if you take a punt and don't advise of a change, but don't bank on you making it through completion ....

Hope this helps

Holly

MikeyGB313

Yes - I understand the need to inform the lender of a material change in circumstances.

If i was to answer that question today - then there has not been any change. I am still in employment, received my monthly pay and have not been informed that this is due to change.

I am only worrying that something will change and cost me the depoit if i exchange contracts and a change does occur... In which case im obliged to tell them.

Oh how life is hard.

Does anyone know what they ask employers in a reference request? Is it just confirmation of salary and years of service?

holly_hobby

You don't need to tell the lender of rumoured redundancy as you may not be affected.

If of course you have been formally advised of your redundancy, than that IS a material change - and accordingly should be reported to the lender.

Hope this helps

H