2 credits checks for same mortgage

MrsO84

Applied and approved for a mortgage with Halifax/BoS and property bought and paperwork complete in September so 1 hard credit check on my report, get the keys for the prooperty on 20th January. Noticed today that there was another hard credit check done on 12th Dec for the same reason (1st mortgage application). Don't really want another check showing up on my report unnecessarily, but wondered if this was standard practice? I know there is a few months between us 'buying' the property and the mortgage actually beginning (e.g. deposit won't be paid until 20th Jan) but thought that once the mortgage was agreed that it was final? Not worried about anything and no financial changes, just hoping to get a better understanding of why there was a second search.

AnotherJoe

From what you've written the property was not bought in September. I presume you exchanged contracts then.

The second check has been done before completion on Jan 20, checking no doubt that you haven't gone wild on credit cards, taken out a massive car loan or indeed a loan. Had you done that they would have been within their rights to withdraw the mortgage offer. It's not final until completion.

MrsO84

We live in Scotland and the missives have been concluded and solicitor happy with everything including mortgage so my understanding is that we have bought the property, there is nothing further to do other than transfer the deposit on 20th Jan and collect keys following completion.
There have been no further credit accounts opened and limited spending on the current credit cards since then.
Just wondered if this was standard practice to run another check.

AnotherJoe

I'm not familiar with Scottish law but you surely have not bought the property if you don't have the keys?
You are committed to buy it I'm sure, but I very much doubt the lender is committed 100% to provide the money.
You gave them a set of figures on income and expenditures including current loans. If, after agreeing that, you subsequently took out a large loan, you'd have broken that agreement. They are checking you haven't done that. That's fairly common practice in England anyway.

I'm sure someone familiar with Scottish law will pop by soon .

Thrugelmir

MrsO84 wrote: »

Just wondered if this was standard practice to run another check.

Lenders can run however many checks they wish. People try all sorts of stunts to obtain a mortgage. Considering the sums involved, hardly surprising that lenders therefore do so. After all the transaction is based on trust and self declaration.

baz8790

Both yourself and the seller have entered into a contract by concluding the missives and cannot back out without penalties,

As far as Halifax are concerned they are not obligated to give you the funds until your solicitor requests the funds (usually a couple of days before entry as you pay interest from the day that the funds are received)

There will be terms and conditions in your mortgage offer

As stated above the second check will be to make sure that your financial situation has not changed since they made the offer, or it could of been randomly picked for the underwriters to check

You might find that another check is done a couple of days before compleation when the solicitor requests the funds.

MrsO84

Thanks.
@baz8790 - I'm not concerned about the mortgage being declined but it doen't look great having all off these checks on my credit report, is there any way i can ask to have these removed after the mortgage is concluded and funds transferred?

Thrugelmir

If checks were removed it would make the data worthless to other users. Why the concern? Doesn't alter your ability to obtain further finance in the future. As these are only mortgage related enquiries.

Getting hung up over ones credit report is a rather fruitless exercise. As the only person who can view it is you.

MrsO84

@Thrugelmir I suppose it is because i worked so hard over the past years to get a good credit rating and don't want multiple hard checks to affect my credit score, and in turn, my ability to get future credit e.g if i was considering getting finance for a car or furniture in the next 6 months.

Lemonsqueezer78

"ratings" and "scores" are mythical numbers, that no other lender actually sees anyway. They are generated numbers - made up by Credit Agencies as something to sell to you.

A second mortgage-related credit check will have virtually ZERO affect on your credit worthiness or likelihood to be accepted for other credit in future. Especially as any prospective lender would be able to tell that both checks are by the same mortgage lender and likely related to the same mortgage application.

There is nothing to worry about here in terms of the affect on your credit information. Nothing.

AnotherJoe

MrsO84 wrote: »

Thanks.
@baz8790 - I'm not concerned about the mortgage being declined but it doen't look great having all off these checks on my credit report, is there any way i can ask to have these removed after the mortgage is concluded and funds transferred?

Why? I don't understand the paranoia some people here have about debit checks. "It doesn't look great" to who exactly ? Who is it, other than you,that cares about these checks ?

You are just about to get a mortage, are you planning to rush out and get more loans? If not, why goes it matter ? I suggest you save some money by cancelling your subscription to whatever service you are using to check on your credit score every five minutes

Enjoy your new house !