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

sammyjammy

bailey2658 wrote: »

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 Does anybody know what the likelihood is our mortgage offer will be withdrawn at last minute due to change in credit report?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.

If you look at OPs previous posts you can see that they successfully moved into their house. The difference between them and your situation is you've actually taken out this additional credit which would make a difference if they do credit check.

I'm not sure why you would take this risk when you know you've been asked ot declare all credit on your application.

harvey115

bailey2658 wrote: »

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.

Okay what is done is done, although it was not a good move to take out credit before completing.

Here are a few points

1 - The new credit may take a couple of days before coming onto your credit history, so you might just escape that.

2 - Halifax may NOT do another credit check, it is not a mandatory procedure, but it is being done more often now-a-days. So best of luck with that. Even if they do, they might just overlook it if the affordibility is not an issue from the lender's perspective. Although if that happens the process might be delayed a bit i.e. the underwriter may have to review again.

3 - If you are exchange and completing on the same time (this Friday), then your money should be safe. Your solicitor would know aboput the mortgage money because it will be with your solicitors a day before completion. However if you are not exchanging and completing at the same time, you may as well as the seller about this and request for doing this on the same day to protect your loses.

Hope this helps.

bailey2658

sammyjammy wrote: »

If you look at OPs previous posts you can see that they successfully moved into their house. The difference between them and your situation is you've actually taken out this additional credit which would make a difference if they do credit check.

I'm not sure why you would take this risk when you know you've been asked ot declare all credit on your application.

We didnt realise that another credit check would be done or that this could affect the mortgage, we have obivously been a little naive but it genuinely never crossed our minds otherwise we would never have even applied for it until after completion. Ironically the credit card I myself applied for and got instantly approved for was with the Halifax itself (our new mortgage lender). so I again assumed that it wouldnt be an issue since they must be aware of our ongoing mortgage application.
I'm just praying it doesnt show up on credit file before thursday.

bailey2658

harvey115 wrote: »

Okay what is done is done, although it was not a good move to take out credit before completing.

Here are a few points

1 - The new credit may take a couple of days before coming onto your credit history, so you might just escape that.

2 - Halifax may NOT do another credit check, it is not a mandatory procedure, but it is being done more often now-a-days. So best of luck with that. Even if they do, they might just overlook it if the affordibility is not an issue from the lender's perspective. Although if that happens the process might be delayed a bit i.e. the underwriter may have to review again.

3 - If you are exchange and completing on the same time (this Friday), then your money should be safe. Your solicitor would know aboput the mortgage money because it will be with your solicitors a day before completion. However if you are not exchanging and completing at the same time, you may as well as the seller about this and request for doing this on the same day to protect your loses.

Hope this helps.

Thank you for your reply, I am hoping it wont go onto our credit records before thursday. We are all set for exchange and completion on same day so hopefully that will protect our deposit.

sammyjammy

bailey2658 wrote: »

We didnt realise that another credit check would be done or that this could affect the mortgage, we have obivously been a little naive but it genuinely never crossed our minds otherwise we would never have even applied for it until after completion. Ironically the credit card I myself applied for and got instantly approved for was with the Halifax itself (our new mortgage lender). so I again assumed that it wouldnt be an issue since they must be aware of our ongoing mortgage application.
I'm just praying it doesnt show up on credit file before thursday.

Lesson learnt, as already said it should be fine. Let usk know how you get on.