Final credit check before completion!?

evans250477

I wonder if anyone on here has information regarding the final credit checks that Natwest might perform before I complete on my mortgage?

I have an offer in place, but my house will not be built until November, I am told that the bank will look again at our credit files just before we complete even though we have been through the underwriting process, does anyone know what they will be looking at? Is it just to ensure that nothing fundamental has changed? I have an overdraft facility at present, if I were to go into that by say £3k would that mean the offer was withdrawn? Potentially this could mean losing a deposit could it not?

thanks in advance!
John

Oakdene

It basically means they will check to see that you havent taken on any substantial debt since they offered the mortgage, this will ensure you can still afford the repayments.

ellison007

Hi

Who told you that the bank will credit check you a second time prior to completion? Was it someone at the NatWest bank or your broker or word of mouth?

Thank you.

Polly05

That happened to my pal. And I read on here, that it's happened to a lot of people.
People get their offer accepted then go and buy a couch/furniture on credit. Then there's a last minute credit check, they fail. Don't get the house. And no where to put all the furniture they've ordered.
I always tell everyone not to put anything on credit before they've got the keys.

Matt_L

This too has happened with us but we are with Leeds. They did a full credit check in January when applying for our mortgage and then again just this week as we hope to exchange....

ellison007

I think we're talking about about two separate issues here.

1. A mortgage lender performing a second credit reference check prior to exchange of contracts
2. A mortgage lender performing a second credit reference check prior to completion.

evans250477 is worried about the latter, Matt L the former - is that correct? Exchange of contracts is usually within 28 days if possible - completion can be months after exchange of contracts.

Either way I suppose, perhaps mortgage lenders are performing a second credit check 'just in case'. The advice on this forum seems to be NOT to commit to any further credit agreements until AFTER YOU RECEIVE THE KEYS TO YOUR NEW HOME.

Having said that, changing current accounts prior to completion because the lender is offering a £130 'golden hello' in my mind is different to opening up a 0% on purchases for 24 months credit card.

Maybe it is mortgage lender dependent and not all banks do it? Some do, some don't?

SuboJvR

ellison007 wrote: »

I think we're talking about about two separate issues here.

1. A mortgage lender performing a second credit reference check prior to exchange of contracts
2. A mortgage lender performing a second credit reference check prior to completion.

evans250477 is worried about the latter, Matt L the former - is that correct? Exchange of contracts is usually within 28 days if possible - completion can be months after exchange of contracts.

Either way I suppose, perhaps mortgage lenders are performing a second credit check 'just in case'. The advice on this forum seems to be NOT to commit to any further credit agreements until AFTER YOU RECEIVE THE KEYS TO YOUR NEW HOME.

Having said that, changing current accounts prior to completion because the lender is offering a £130 'golden hello' in my mind is different to opening up a 0% on purchases for 24 months credit card.

Maybe it is mortgage lender dependent and not all banks do it? Some do, some don't?

It's interesting you mention the banks thing. Assuming our mortgage goes through, I was going to open a Santander 123 account to benefit from their cash back but probably best to wait until we complete!

Matt_L

ellison007 wrote: »

I think we're talking about about two separate issues here.

1. A mortgage lender performing a second credit reference check prior to exchange of contracts
2. A mortgage lender performing a second credit reference check prior to completion.

evans250477 is worried about the latter, Matt L the former - is that correct? Exchange of contracts is usually within 28 days if possible - completion can be months after exchange of contracts.

Either way I suppose, perhaps mortgage lenders are performing a second credit check 'just in case'. The advice on this forum seems to be NOT to commit to any further credit agreements until AFTER YOU RECEIVE THE KEYS TO YOUR NEW HOME.

Having said that, changing current accounts prior to completion because the lender is offering a £130 'golden hello' in my mind is different to opening up a 0% on purchases for 24 months credit card.

Maybe it is mortgage lender dependent and not all banks do it? Some do, some don't?

You are correct, i was trying to convey that it isn't unusual for second checks to happen at any point, be prepared....:)

csgohan4

No new credit until after completion is the safest thing

TakeItAsRed

TSB checked everything on my credit file again just 2 days before completion. Dont do anything credit related until you have your keys is what i would recommend.

set

Hi

We have mortgage approved with TSB. No deposits transfer yet but solicitor said should all be over in couple of weeks.

The thing is Im getting worried as I have used my credit card. I havent taken out any new credit, just using the card Ive had for years. The balance on card at the time of mortgage application for around £600 which was put on application. Ive used it to pay for shopping, petrol and flights (flights £1600) but I have repaid the whole balance before end of month. In fact I paid the £1600 off two days after purchasing flights. I use credit card for most purchases and pay balance off before end of month. Not gone into overdrafts either.

Should I be worried? I think last minute nerves and kicking in so Ive come here for reassurance.

Thank you