Final credit checks before completion ?

House.buyer.sarah

Just had to swap my energy suppliers for new house we complete on Wednesday , but they needed to credit check first arghhhh! Obviously unavoidable need gas/electric but now wondering if this search will effect anything ?
Would it even go onto my report in next 4 days?
And do halifax even do a final credit check?
If they did would a search for utilities make any differnce ?
Thanks in advance sarag

Paully232000

From reading posts on here regularly the main point seems to be not to do anything that would change your credit file, searches etc before completion.
However, before completion I arranged BT phone/tv/broadband before we moved in, to be fitted after we completed and the search appeared on my credit file and didn't make a difference to the mortgage as the mortgage provider only ever did one credit check on application (not Halifax however).

Someone will come along soon to give a definitive answer but the sensible side of me thinks it shouldnt make a difference even if they did credit check again as if anything like me, the gas/elec prices were not to dissimilar from our sold house so no difference in outgoings, and like you say they must realise that you need gas/elec.

To be cautious for anyone in the future just stick with the sellers supplier until you move in and then change, thats what we did.

kingstreet

There is no definitive answer.

To be on the safe side, you are advised to make no new applications for credit between applying for a mortgage and completion.

You do not need to arrange energy supplies before completion.

House.buyer.sarah

I've done it now though so can't in do it x I'm hoping it probably won't even show on rating as yet anyway ? Going to beat myself up about this now , current house has pre payment meters so they needed to know before I moved , my sensible side says it's not I'm applying for additional credit and surely it's better to have things in place before move date ? Oh lord something else to worry about now lol

House.buyer.sarah

I've emailed my poor mortgage advisor now , I think she's going to think I've gone mad we on first name terms now ha x
Does anyone know when mortgage funds are pulled down ? Is it day of completion or couple of days before hand ?

House.buyer.sarah

My mortgage advisor said everything fine stop worrying lol x ok so I will try ha

ReformedShopper

Hi, I have my mortgage offer, but haven't yet exchanged/ completed. Hoping to do this month. I have the funds for the deposit, which has all been verified for AML checks by my solicitor, however my Solicitor's fees will be paid via the means of a gift of 8K from my mother. My Solicitor was a bit pedantic about my deposit which was a mix of savings and gift, and I had to get the giftee to see another lawyer for legal advice regarding no interest in the property, etc. (The lender never asked for this, but ah well!)

I really don't want to go through this process again with my mother, so I am considering opening a Santander123 account and having my Mom deposit the gift in that account, and also allow me to take advantage of the 3% interest rate available. (Solicitors fees and cost of purchase will be around 3K, leaving me with about £5K).

All rather long winded, but I guess I wanted know if this was a wise thing to do, or if I should just let my Mom put the 8K in my my normal current account ( I don't want to spook the lender at this stage and have queries raised again about the source of my deposit at this stage though!):(

I know the general advice is not to apply for credit between offer and completion, but does opening a normal current account with another bank count? I will not be asking for any overdraft facilty or anything.

kingstreet

Credit checks are done for new current accounts, so it's the same as applying for a loan.

Holgate88

Hi Kingstreet,

Do you know if Nationwide conduct a final credit check before completion?

My mortgage offer was provided in May and I'm due to complete in October, but worrying about a final credit check.

My credit card balance is £600 more than it was when I applied for the mortgage due to paying for extras for my new home, but this will be paid off before completion.

Thanks

Kirstyb1987

Holgaet88 - I completed 4 weeks ago with Nationwide and no further credit checks were done since DIP.

Arina

Kirstyb1987 wrote: »

Holgaet88 - I completed 4 weeks ago with Nationwide and no further credit checks were done since DIP.

So you got your mortgage offer after only one credit check since the DIP stage? Was this a soft search on your credit file or a hard check? Very interested to know.

Thanks