Final credit check before completion!?

ekumi00

It all depends on the lender, how tight your affordability was, whether you are a FTB or not etc etc.
I work at a brokers and I can give 2 examples.
1st - client due to complete on a remortgage on a Wednesday. Monday broker gets an email stating that that they have run another check and will now offer £25k less that originally offered. Client upset, sad, angry but turns out they took out a £10k loan and went £8k into their overdraft assuming they would get this money back.
2nd - friend who bought a property (not a FTB), but just before completion, he took out an £18k loan and no check was done. Now his flat is being refurbished.

All about timing and luck I guess.

set

ekumi00 wrote: »

It all depends on the lender, how tight your affordability was, whether you are a FTB or not etc etc.
I work at a brokers and I can give 2 examples.
1st - client due to complete on a remortgage on a Wednesday. Monday broker gets an email stating that that they have run another check and will now offer £25k less that originally offered. Client upset, sad, angry but turns out they took out a £10k loan and went £8k into their overdraft assuming they would get this money back.
2nd - myself. Bought a property (not a FTB) but just before completion, I took out an £18k loan and no check was done. Now my flat is being refurbished. All about timing and luck I guess.

Thanks for your reply.

I haven't taken out any new credit though so I'm hoping I'm ok?? My balance was £600 when mortgage approved and declared in application but then paid that off a couple of weeks later. I have use this existing card quite a bit since approved but always paid balance off before end of month.

Popular.Dhaka

Hi

1. Does Lander ( Halifax) do another credit check before releasing mortgage fund?

2. Recently I used £2500 credit card (still showing in my Experian report) and my score become Fair ( from excellent). However, I have paid all outstanding balance now.

Will the lender withdraw the mortgage offer as a result of bad credit score ( if they do another check).

I can prove them that I do not have any outstanding debt.

Regards
David James

Frarubvio

Interesting, im waiting to complete after getting mortgage offer and im not taking the risk of using any credit cards until sale is fully complete however my experian score has reduced from 908 to 890 or somethimg thereabouts and the only thing thats changed is the credit checks that got done for mortgage! Thats without using anymore credit

tkel01

In my mortgage offer paperwork fro..leeds it stated that i can be credit checked anytime up to completion....

PKaurK

set wrote: »

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

You don't have anything to worry about since you pay the balance of in full. Worst case is they notice you've increased your credit card balance but you can easily evidence you repay this with a credit card statement. If you repay the balance each month they do not take it as an outgoing so it does not affect affordability.

Awolf

Hi, this has happened to us with Leeds recently, mortgage offer in Oct , conveyance and chain is taking long so have yet to exchange yet, but they did a subsequent (or follow up) credit search this month (90 days after offer), I imagine this is the norm. Did everything work out ok?

Awolf

Matt_L wrote: »

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....

Hi, this has happened to us with Leeds recently, mortgage offer in Oct , conveyance and chain is taking long so have yet to exchange yet, but they did a subsequent (or follow up) credit search this month (90 days after offer), I imagine this is the norm. Did everything work out ok?

Martin8870

Our broker advised us not to open an account or taking out ANY further credit prior to getting your keys

mr_munchem

SuboJvR wrote: »

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!

I have had my credit check with the Halifax and awaiting the valuation (a week tomorrow :j ) and then I should get my final mortgage offer. I want to open a S&S LISA and a Virgin regular e-saver, and asked her about these. Although she couldn't offer a definitive answer she said, "if it were my mortgage, I would just wait until completion" - hence, I'm not going to risk it.
I'm going on holiday to France in a few weeks, and I would normally buy Euros on my Halifax clarity card, but this week I'll be buying on debit (plenty of them) and only taking my clarity card for worst case scenarios as I don't want there to be any activity if possible (just in case!). Good luck!