Credit check on completion

swanslegend

Hi all

I have read on here that its not a good idea to obtain credit before completion, as the lender may credit check again and retract their offer. My mortgage lender is Nationwide and we are due to complete on friday.

We are going to put a new kitchen and bathroom in the house and we wish to take full advantage of the january sales. The offer we have been given is an exceptional price however we wish to put it on interest free over 3 years. However the store supplying the kitchen and bathroom have given us until tomorrow to take advantage of all the discounts.

Does anyone know if Nationwide do a further credit check on completion?

Your help appreciated.

Cheers

holly_hobby

All lenders operate such ad hoc checks, so no one can give you a cast iron gte that it won't be picked up.

Having said that, its only a real issue if it reduces your mge affordability, to the extend that you may no longer qualify for the reqd mge sum - and may well end up with a revised and reduced mge offer, as a result of the new debt.

Hope this helps

Holly

ValHaller

You need to explain to the kitchen seller exactly why you need the window extending for a week. If they won't play ball, walk away. If the mortgage offer is retracted, the costs of not completing will buy you several kitchens. Plus you will be stuck with a commitment to buy the kitchen which lost you your house.

At the worst, there will always be another kitchen deal.

swanslegend

I have checked online with the nationwide mortgage calculator including the new debt for kitchen and bathroom and that says I can afford £176k, we are borrowing £95k, so even with the £5k extra debt for the new kitchen and bathroom we are well within the borrowing limits. With the information above what are your thoughts? I understand that there will be further kitchen deals and the suppliers have said that I can return the bathroom/kitchen for any reason whenever I want, so there is no risk of having to keep the kitchen. I know the sensible thing to do is to wait.......but i really do not want to miss out on this deal and the suppliers have said they will not extend the offer past tomorrow. What would you do?

thanks for you replies by the way.

ACG

Is the deal worth you losing your mortgage?
The chances of them doing the check is probably fairly slim, but its the risk you take - weve all come across sods law at some point or another.

Annisele

If you ask the kitchen people to wait a week, you might lose the kitchen

If you take the kitchen now, you might lose the house and a substantial chunk in fees and costs.

I'd delay the kitchen! Plus, if kitchen isn't sold by next week to somebody else, the deal might still magically find its way back to the table.

Newwashingmachine

I actually didn't take a job offer when I was moving - because I was offered it a month before completion on my mortgage and I couldn't risk losing the house. So ended up being stuck for another year in a job I hated!

I wouldn't risk losing my mortgage for a kitchen. Like others have suggested speak to the kitchen company and see if they can accommodate.

ValHaller

swanslegend wrote: »

I have checked online with the nationwide mortgage calculator including the new debt for kitchen and bathroom and that says I can afford £176k, we are borrowing £95k, so even with the £5k extra debt for the new kitchen and bathroom we are well within the borrowing limits. With the information above what are your thoughts? I understand that there will be further kitchen deals and the suppliers have said that I can return the bathroom/kitchen for any reason whenever I want, so there is no risk of having to keep the kitchen. I know the sensible thing to do is to wait.......but i really do not want to miss out on this deal and the suppliers have said they will not extend the offer past tomorrow. What would you do?

thanks for you replies by the way.

My thoughts are that a house without a kitchen is better than a kitchen without a house.

Now, if you are borrowing 95 but could borrow 176, the underwriting may not be finely balanced. But beware. 5k of consumer credit could knock many times that off your mortgage potential. And if you have more than 3 or 4 months salary owing on consumer credit, the extra 5k may take the mortgage underwriting into a critical zone.

I think with the kitchen people, you just have to say that you will be back to sign on Monday after completion. You may even find that there are 'further exclusive discounts in our bonanza sale', which is why they are insisting you sign up now. And if after completion they will not give you the same deal or better, well it is there loss.

If you cannot restrain the urge to grab deals on stuff which is not immediately required at a delicate moment in your financial life, it does not bode well for your financial future if things get tougher.

swanslegend

ValHaller wrote: »

My thoughts are that a house without a kitchen is better than a kitchen without a house.

Now, if you are borrowing 95 but could borrow 176, the underwriting may not be finely balanced. But beware. 5k of consumer credit could knock many times that off your mortgage potential. And if you have more than 3 or 4 months salary owing on consumer credit, the extra 5k may take the mortgage underwriting into a critical zone.

I think with the kitchen people, you just have to say that you will be back to sign on Monday after completion. You may even find that there are 'further exclusive discounts in our bonanza sale', which is why they are insisting you sign up now. And if after completion they will not give you the same deal or better, well it is there loss.

If you cannot restrain the urge to grab deals on stuff which is not immediately required at a delicate moment in your financial life, it does not bode well for your financial future if things get tougher.

But if they do no further checks how would they know??

Goldiegirl

After a mortgage has been offered, it's unlikely that they'll do another credit check. Exceptions to this may be if the mortgage was offered 6 months ago and they need to 're-offer' it, or if there's a major change to the mortgage, such as a change in the amount to be borrowed.

However, if you can avoid taking on further credit commitments until after completion of the mortgage it would be best, to be on the safe side.

ACG

swanslegend wrote: »

But if they do no further checks how would they know??

They would'nt!

Nobody here can give a cast iron guarantee they wont do another credit check. Its very unlikely but not impossible. Its down to you to make the decision. Your the only person who can gain/lose from this.