Mortgage Offer recieved change property

BrightStart

Hi All,

Had a survey done on a property and within 5 days recieved the mortgage offer from the bank. I have since changed my mind on the property and went for a new property as it ticks all the boxes.
It is valued at 20k more than the original one but this is within the maximum loan amount the bank is willing to lend me. So i obviously i had to reapply to the same bank due to the new property but i am not changing anything else i.e. staying with the same rates and bank etc. It has been 12 days since the second property was surveyed and i am yet to hear from the bank on the offer this is weird considering they only took 5 days to make me an offer on the first property.

My credit score etc is really good i do not have any outstanding loans never late on making payments and have excellent credit score. Anyone have any advice? Will the bank not make me an offer as why else is the delay? How much longer do i wait?

As the same bank has made me an offer based on the first property which has fallen through now is it safe to assume they will make me another offer for the second property which i now want to purchase?

Thanks
Steve:)

kingstreet

An increase has to be re-underwritten and the workload may have changed since your application was first submitted.

Wait it out, or ring them and ask what's happening.

Not much more we can tell you.

BrightStart

Thanks. What sort of things will the underwriter check for before making the decision? Will they do another credit check? I would've thought as they have all the details on my income etc on file it should have taken less time than the first offer?

Does the fact that they have made an offer to me already count in my favour?

Thanks. Steve

kingstreet

Normally, a credit-scoring lender will re-score the case. Sometimes this will involve a new credit check, sometimes the previous check is used. It depends on that particular lender's policy.

The fact you've previously had an offer is irrelevant. Effectively, the case goes back to day one and starts again with the usual request for the necessary status information and documentation.

Did the loan to value change, or have you increased your deposit to match?

BrightStart

Hi,

There is no change to LTV i will make up the the extra cash required for the deposit but obviously will need to borough about 15k more on the mortgage which is probaly an increase of about 5% of the loan amount they already offerred. When i did the AIP with them they said i could borough a lot more than what i am asking to borough now with this property. So i don't understand why they would need to do another credit check within a space of a few weeks.

Thanks
Steve

harvey115

Usually any changes to your circumstances or details during or post application process would go through another credit check. This is a standard practice across the market, there are some non high street lenders who do not follow this process as such.

Since you details i.e. the peroperty you are buying and the amount you would like to borrow has changed so does the criteria the lender system's apply on your application. I am afraid you will just have to wait and see the outcome.

Best of luck

BrightStart

Hi,

Many thanks for your replies. Do they do the credit check before they instruct the survey or after the survey has been done?

Thanks
Steve

harvey115

It depends on the lender and the process they have laid out.

I recently mortgageed with Clydesdale and they did a full credit check on me after they had the results from the survey.

BrightStart

i have applied to Halifax so not sure whether they do the credit checks before or after the survey. Now i can see why it will take them so long to make an offer as they will be redoing everything from scratch and the work they already done counts for nothing. I am worried that with all these credit checks in such a short space of time will reduce my credit score and therefore they may say this person credit score is gone from good to bad now so no more lending to them.

Thanks. Steve

harvey115

No, the credit score is generated through lender developed algorithms and for sure they must have excluded their own crddit checks on the profile as the most basic check. Lenders would be more interested in getting details of other credit authaurities doing credit checks on your rather then themselves, if you know what I mean.

The credit searches only stay on your file for about 6 months, so that is not big of a deal. Your credit agreements are. So if you have passed the first time the chances for credit check pass would be more then likely I would say unless you have problems in your credit history such as late payments, ssj, defaults etc.

Just keep calm and allow the lender to get your application processed. I know this is the most stressful situation as I have just been through it in the past couple of months.

Best of luck...

BrightStart

Hi,

Just had a thought. Can i still accept the original offer the bank has made to me on the first property and ask them to only change the property details? Which means i will increase my deposit to the purchase price of the new property? So effectively i will be paying the price difference of 20k out of my own pocket. Is this possible or can the offer not be amended to a new property? Thanks. Steve