Mortgage offer not on credit file

Candyapple

I just re-read your first post and see that your mortgage is with First Direct. From my experience if you are an existing customer with them, they don’t bother to credit search you for any products, so that would explain why no searches are showing on any of your files.

The confusion is if it was any other lender, the searches would/should be showing. Last year I applied for a mortgage with NatWest, the AIP soft search showed on my files and then when I made the full application, the hard search showed on all 3 and then the actual mortgage account itself was added about a month or so later once the funds had been drawn down.

Your mortgage account itself will probably show once the funds have been drawn down. Same usually happens when I have applied for a HSBC/FD credit card, no searches done and account appears later.

zacepi

Candyapple wrote: »

I just re-read your first post and see that your mortgage is with First Direct. From my experience if you are an existing customer with them, they don’t bother to credit search you for any products, so that would explain why no searches are showing on any of your files.

This is right - I am an existing customer, and is a good explanation.

zacepi

A4445 wrote: »

It can’t be an offer yet as you don’t have a property. The mortgage company needs to value the property first. You won’t know your LTV so you can’t have a product in place. The lender could find issues with a property and won’t offer you a mortgage.

This is all kinds of wrong.

Exodi

A4445 wrote: »

It can’t be an offer yet as you don’t have a property. The mortgage company needs to value the property first. You won’t know your LTV so you can’t have a product in place. The lender could find issues with a property and won’t offer you a mortgage.

I didn’t even have an AIP it went straight to application. This was approved AFTER the house was valued.

Have you actually read any of this thread? The OP does have a property and does have an offer - to do this, the lender would have obviously valued the property... to say 'You won't know your LTV so you can't have a product in place' is all kinds of stupid, unless you mean to suggest the OP is unaware of the property value or what deposit he has? The lender could find issues and not offer a mortgage but that's not the case as the OP has explicitly said they've already provided a formal offer.

zacepi wrote: »

What are people finding difficult to comprehend? - please help me clarify my query more clearly as certain replies are patronising and I have no idea what I said that isn't clear.

I'm genuinely with you, I'm baffled that people seem to be unable to understand your relatively simple query. I'm beginning to believe a lot of people offering advice have perhaps never taken out a mortgage before - the only person that seems to have any idea what they're talking about appears to be Candyapple.

I'd say this is one of the rare threads that the poster seems to have more knowledge on the subject than most of the people offering advice - my apologies, this isn't a true reflection of MSE of which is usually pretty on the ball.

nyermen

I have a mortgage offer from HSBC (same group as first direct). And I've gone through an almost identical process. I have the offer on the property, first legal charge, valutation done, etc etc.

Right now, i'm waiting for the lawyers to finish their parts so we can discuss exchange etc.
I've not checked my files, but based on what I understand (and my own knowledge working in the industry), i will have:
1) A Hard search on my file from the application (plus a soft search from the DIP);
2) Nothing else as the offer isn't drawn down, so I have no debt to show on the file (yet?! )

Btw, if you login online / mobile, do you also see a new account "Mortgage" with a zero balance? I do.

zacepi

Exodi wrote: »

I'd say this is one of the rare threads that the poster seems to have more knowledge on the subject than most of the people offering advice - my apologies, this isn't a true reflection of MSE of which is usually pretty on the ball.

Thanks Exodi. In hindsight perhaps I should have posted in the Mortgages board but it's really a query about searches.

I know this application went to the underwriters (as I spoke to them) and imagine they did their diligence with my paperwork, payslips etc. and didn't bother with a credit file search.

Exodi

zacepi wrote: »

Thanks Exodi. In hindsight perhaps I should have posted in the Mortgages board but it's really a query about searches.

I know this application went to the underwriters (as I spoke to them) and imagine they did their diligence with my paperwork, payslips etc. and didn't bother with a credit file search.

I think you're right, if they're your main bank it's probably unnecessary to externally check your credit file.

Also as mortgage offers are legally binding, they're obligated to provide you the loan. Lenders typically also perform a second hard search upon completion (though they may also choose to skip this).

System

Thats madness to think they wouldn't credit search you for a full blown mortgage because you have an existing product with them. So what if you have a bank account with them. You could have 4 CCJS and defaulted on every line of credit you have. They might not know this without a credit search and as such arent going to lend you hundreds of thousands of pounds without doing a quick check. Imagine the massive additional risk for no reason what so ever. How much does it cost them to check your credit file. 2 pence?

Exodi

beany_bot wrote: »

Thats madness to think they wouldn't credit search you for a full blown mortgage because you have an existing product with them. So what if you have a bank account with them. You could have 4 CCJS and defaulted on every line of credit you have. They might not know this without a credit search and as such arent going to lend you hundreds of thousands of pounds without doing a quick check. Imagine the massive additional risk for no reason what so ever. How much does it cost them to check your credit file. 2 pence?

The only way it would make the slightest sense to me is if the LTV is 'decent'. Eg, it might be that First Direct take the stance that 'he's putting down 50% of the value of the house, even if he doesn't make any payments, we can just repossess the house and still get our money back."

Either that or I guess you could argue that as you have to declare any outstanding loans as part of the application process, you'd have committed mortgage fraud by not omitting these.

Still, as you said, for the sake of 2 minute credit check...

phillw

Exodi wrote: »

Also as mortgage offers are legally binding, they're obligated to provide you the loan.

Unless you withheld a change in circumstances, it's not legally binding if they discover fraud.