Should I be worried that lender may withdraw mortgage having just exchanged?

francohoops

Hi
Had a mortgage approved back in July (5 year fixed, 60% LTV). Exchanged on house last week. Due to complete next Friday (14th). 10% deposit has been transferred to vendors solicitor.

A couple of weeks ago I applied for a credit card which was rejected.

My credit score is pretty good, with no defaults or loans (other than the mortgage which has been approved). Not really sure why application was rejected.

I am now really worried that if the lender may pull the mortgage offer if they re-check my credit scores.

Should I be concerned?
F

Dave_Ham

This was not that sensible, although whats done is done.

I would not panic for now, just see down to completion as unlikely they will re-credit check to confirm. Although they can, it is incredibly unlikely.

Once completed, you need to check your Experian, Equifax and Call Credit reports to understand why the credit card was declined...

Good luck

francohoops

Thanks for your reply.

Will checking my Experian report now cause any problems?

F

Dave_Ham

Almost certainly not, but given the timescales involved I would not be checking.

Additionally, if you have something negative on your credit file then you were duty bound to report this to the lender. If you now locate something, you will have a moral quandry about whether to report.

Focus on the completion and sort out your credit file post completion.

DiscoCat54

What would prompt a lender to re-check credit or affordability? Are they random checks or does something trigger them?

Dave_Ham

Random audits, its moreover to check additional credit has not been taken above what was declared and verified.

Some lenders do this more often that others, but still by no means commonplace.

francohoops

who are the most likely lenders to check this?

would a rejected credit card application on an otherwise very good credit history make them reconsider the offer?

Dave_Ham

No - but there will be a reason for the rejected credit card and I suspect it will not be an otherwise good credit record.

Lenders change the frequency and regularity of these, so nothing to be gained from name dropping banks that in my opinion check a lot or not often and not fair on your if your bank is in them

This should be fine - try not to panic

Wh05apk

Who's the lender?

harvey115

Try not to panic!

The Credit Card rejection could also be due to other reasons then a fault in your credit history. Since your Mortgage Application has been approved, you can at least be assured that your credit history was satisfactory for that large amount to be lent to you.

As Dave suggested correctly, do not worry about this at the moment and look for the completion. Once you complete your purchase, then go about investigating the decline on your credit card. You might get a better deal by then

Best of Luck

bailey2658

Hi Can i ask what the outcome of this was? I am in a similar situation, had our mortgage approved with the Halifax and are due to exchange and complete on Friday as there is no chain at all. We took out some extra credit on our current credit cards a week ago (cash advance to help with moving fees not deposit) and to prevent paying a high interest charge on these we both applied for new balance transfer credit cards - £3000 each - so we can pay if off over a year. At the time we did this we had no idea that the mortgage lender re-did a credit check before completion, i only discovered this yesterday and so now i am absolutely terrified it will all fall through - do lenders always do a final credit check?. I checked my own credit report yesterday and my new credit card hasnt showed up on it yet. The solicitor will request funds from Halifax day before exchange/ completion so this will probably be on thursday. Does anybody know what the likelihood is our mortgage offer will be withdrawn at last minute due to change in credit report? I feel sick worrying myself about this, im supposed to be transferring deposit to solicitor today (£25,000) and im worried if i do and anything goes wrong we will lose this money. Myself and my husband both have excellent credit history, my score with experien yesterday was 975. And halifax had originally offered to lend us up to £306,000 and we are only borrowing £225,000. Any help or advice would be greatly appreciated. Thank you.