Exchanged contracts, but worried about Mortgage offer withdrawal

Dancer11

Hi everyone,

I am a 43 year old FTB and have exchanged contracts on Tuesday on a new build that will not be ready until the end of March.

A little history, I married last year but my husband is a fair bit older than me, so I applied through a broker for a mortgage in just my name to be able to have the mortgage term for a longer period. The majority of our deposit has also come from my husband.

My mortgage lender, Nationwide, are happy with this situation and my husband has signed the relevant documents with regards the gifted deposit and residing in the property.

On application my husband was soft credit checked as a financial associate (we used to have a joint account, now closed, and an old joint HP agreement, now settled).

My query is, my husband has purchased a new car on HP in his name only. If Nationwide were to do another credit check before completion, would my husband’s new car finance affect the lenders decision to lend to me, and potentially withdraw my mortgage offer?

Many thanks.

foxy-stoat

A question for your broker really - not sure why they credit checked him if he is not party to the mortgage even though he put up the deposit and will have no financial interest in the property, even though he actually has a financial interest and married to you.

Lets hope that him buying a new car wont cause your lender to pull the offer, as you will lose the deposit already paid on exchange of contracts.

Report back as a few people on here regularly ask if they can take out more credit after a mortgage offer has been made, based on material facts at the time and they dont inform the lender that they intend on taking out credit for that new sofa, dining table and cars before completion.

[Deleted User]

Nationwide credit check all associated parties so will credit check unnamed people on the mortgage. Its generally only to catch bankruptcy and insolvency in general and have never come across a case where the affordability of the other party has been brought in to it.

My gut feeling is that it will be fine. They didnt ask for his outgoings on your application so wont care about them now

Dancer11

Thanks for your reply. My broker knew my husband intended to purchase a car on HP as it was ordered in July, and there was a hard search on his file showing this. We didn’t enquire about a mortgage until the beginning of October, and the new car was already in production.

My husband is in a secure, full time job and can afford the repayments on his own, and I was not asked for any of his earnings during the mortgage application.

Dancer11

Thank you Deleted_User, that’s put my mind at rest a little.

fezster

Check with your solicitor, but I believe the checks done just prior to completion are only bankruptcy checks.

Even if not, a car bought on HP by someone not even on the mortgage application, is not going to result in your lender suddenly pulling your mortgage offer. So you should be absolutely fine.

Dancer11

Thanks Fezster, I’ll double check. It’s just I read that lenders can do credit checks at any time until completion, and have been worrying this new car will now scupper everything!

carrotland

Lenders CAN do credit checks even on the day they are to release the money!
Our mortgage broker specifically told us that that is one of the reasons an offer can be pulled- taking out additional credit, but I think it would matter if you did that, as the person taking out the mortgage, not him.

Jumblebumble

carrotland wrote: »

Lenders CAN do credit checks even on the day they are to release the money!
Our mortgage broker specifically told us that that is one of the reasons an offer can be pulled- taking out additional credit, but I think it would matter if you did that, as the person taking out the mortgage, not him.

My take on this is that although you are correct that the loan could be pulled after exchange I suspct It is very rare that this is done unless someone has told porkies or damaged their affordability by taking out a big extra loan or changed their employment
I believe this for 3 reasons
One is that I have never actually heard of this happening to anyone who did not have a significant change in circumstances
Second any lender is under a duty to treat customers fairly and I would bet that if a consumer had an offer withdrawn unfairly the regulator would force them to pay the substantial costs.
This combined with the reputational damage to the lender would not be something that they would want
third If it were common I am sure an insurance company would jump in to offer a policy to cover this scenario

Dancer11

Thanks for these replies. I have been worrying about it so much that I’ve even thought maybe I should apply for a disassociation with my husband through the CRA’s, as we now have no current accounts etc together, but I’m guessing this would just look like I’m trying to hide something anyway when they’ve already searched his file on application!

They would have also seen the hard search on his file from July when we applied for the car finance.

Dancer11

I'm now due to complete at the end of the month and I'm still worrying about a final credit check re the husband's car HP. I've spoken to my broker, who has said Nationwide will do another credit search approx. 5 days before completion and he said it should all be fine as all done on just my affordability etc....but it's the "should" that bothers me! 
The thing I find worrying is that although my husband was soft searched on Equifax and Experian, it shows a hard search for him when I check Credit Karma. He is financially linked to me due to a closed loan and closed savings account, so I know that's why they searched him, but confused as to why Credit Karma is showing a hard search when he is not an applicant on the mortgage?
We no longer share any financial bank accounts or loans, so If I was to raise a notice of disassociation with the CRA's now, would this look suspicious to Nationwide after they've already searched him when deciding on the mortgage offer?