Credit check again after mortgage offer

phil10

So I wonder if anyone can advise as I’ve looked all over the internet and can’t seem to find anyone who has a similar situation. Before we applied for a mortgage I managed to scrape my credit score to fair. We were offered a mortgage but the hard check had an effect on my score. Add to that me changing my utilities and renewing my car insurance (I didn’t know it would effect it) I’ve dropped into the poor zone :-(. We got the offer November 4th and are due to complete 24th jan so no time to build my score back up. My question is will Halifax do another hard search before they release funds and if so and I fail will they cancel our mortgage? The stress that I could be the one to ruin things is keeping me up at night :-( 

K_S

phil10 said:

So I wonder if anyone can advise as I’ve looked all over the internet and can’t seem to find anyone who has a similar situation. Before we applied for a mortgage I managed to scrape my credit score to fair. We were offered a mortgage but the hard check had an effect on my score. Add to that me changing my utilities and renewing my car insurance (I didn’t know it would effect it) I’ve dropped into the poor zone :-(. We got the offer November 4th and are due to complete 24th jan so no time to build my score back up. My question is will Halifax do another hard search before they release funds and if so and I fail will they cancel our mortgage? The stress that I could be the one to ruin things is keeping me up at night :-( 

@phil10 You can safely ignore the movement in your "credit score" as Halifax doesn't care about that.

If it has been a long time between offer and completion, lenders may refresh the credit check during that period. I've never seen or heard of an offer being pulled due to a hard search for non-credit facilities like broadband, etc. The main reason why a lender would even consider pulling an offer after a credit check is if you have added borrowing in the meantime - taken out furniture on finance, got a new fancy car on PCP, etc.

If you haven't taken on any new borrowing/credit commitment large enough to affect affordability, I would rest easy. I know, it's easier said that done

MWT

phil10 said:

...Add to that me changing my utilities and renewing my car insurance (I didn’t know it would effect it) ...

Were you previously paying your car insurance a year in advance and have now shifted to a monthly credit arrangement?

phil10

I’ve always paid monthly so stayed with the same company as they gave me a good renewal price. Didn’t expect it to have a negative impact on my credit score though. 

[Deleted User]

phil10 said:

I’ve always paid monthly so stayed with the same company as they gave me a good renewal price. Didn’t expect it to have a negative impact on my credit score though. 

Your credit score has nothing to do with your credit worthiness and will change for any and no reason.

MWT

phil10 said:

I’ve always paid monthly so stayed with the same company as they gave me a good renewal price. Didn’t expect it to have a negative impact on my credit score though. 

So no increase in credit commitments, nothing to worry about, certainly not a change in a meaningless credit score.

phil10

Thank you all for taking the time out to reply. I just get myself stressed as getting a mortgage during a pandemic isn’t easy. I just don’t want them using any excuse to not go through with it. 

No credit has been taken out nor will it. We were told by our MB so am too scared to even use the credit card! 

MWT

The monthly insurance payment is a credit agreement, and it is usually a new one each year so that is what will have triggered a score change, but from the lenders perspective, you have just replaced the one from last year with the one for this year so it isn't an increase in your commitments.

SpiderLegs

The way that organisations monetise their functions by creating value indicators that have no actual value is a true joy to behold.