New Mortgage

Thematrix123

Hi All,

I am looking for some information and for someone to put my mind at ease!

We applied for a mortgage a around 1 month ago, the AIP was accepted but then the mortgage was offered to us on the basis of us clearing off some debt (credit cards around 12K), this was done and just over a month on we have been offered a mortgage (Yay!)...

We have been a bit naive here and thought everything was done and set it in stone... between this gap my partner has ordered a sofa on finance (£1000) and I have taken out a loan - its worth noting I already had a loan in place and the lender accepted this as regular outgoing that did not need to be paid off... The new loan I have taken out is a really low rate (since paying the credit cards off my credit file has improved), infact its such a good rate the APR is around 14% cheaper... even though I have borrowed 2.5K more the payments are still less each month.

We are due to sign the agreement and pay our fee's and deposit on Monday with a completion date and "keys handed over on Thursday. We are both on edge because we have taken out additional credit and have since heard rumours that the lender may do a last minute check. Is anyone able to shed any light on if this is true or if we are too far down the line as its all been agreed?


Thanks!

ACG

Lenders can do checks right up until the funds are released.
I have no idea how common it is, I have never had any issued in 4 years.

LKRDN_Morgan

Broker told me not to take out any new credit commitments prior to completion as random checks can be done at any time

Thematrix123

Thanks for the replies, lets just hope they dont check then!

Thematrix123

So I just checked my experian report, none of the new credit has shown yet, I can see two hard searches done by the lender... surely they can't do another search as this has an impact on our credit scores?

With the short space of time between signing and completion (3 days) I think we should be ok?

Our mortgage advisor doesn't seem too concerned but said if they did check it may delay things for a few days whilst they asked questions.

Has anyone else had a similar experience?

Lilla_D

I know of two instances where a last minute credit check was carried out before funds were released. In one case it only caused a delay in explaining the extra debt (furniture finance, like yours), but it didn't influence the mortgage amount, so it was accepted, while in the other case the client couldn't borrow the requested mortgage amount any more, so last minute family help was needed to make up the purchase price.

Since the above cases, I always advise my clients not to even have a credit search done prior to completion let alone take on extra credit commitments. I don't know either how common it is with lenders, but best not to get into an unnecessary last minute stress situation.

[Deleted User]

Thematrix123 wrote: »

surely they can't do another search as this has an impact on our credit scores?

Of course they can if they want to. They're not going to be concerned about impacting a made up score only you see.