HSBC checks between exchange and completion

Rachel*

I received my mortgage offer at the end of October - it’s with HSBC and 65% LTV. Everything has being going ok since then and we are working towards exchange/completion this month, but I was wondering if HSBC will do any further checks before completion? 

I haven’t taken on any new credit since then, and when I have used my credit card it’s always paid off in full. Should I prepare any bank statements or pay slips? Would they normally check these again after exchange? And will they do another credit check before completion? 

I think I’m just extra nervous as it took so long just to get my mortgage offer, and with us in lockdown again I’m wondering if they will be more cautious with lending? 

Windofchange

From previous posts on here on the subject it seems to be a bit of a how long is a piece of string question. The Halifax didn't do any further checks on us before completion last year, but if you do a search on here you will probably find 100 posts saying they got checked and a 100 saying they didn't. If you have nothing to hide and your circumstances are the same as when the mortgage was offered, it doesn't really matter as if they do check you then all is in order and your offer will go through as expected. If you have been furloughed or are trying to hide something (usually why this question comes up) then it is a risky game you are playing...

Carl2510

I would suggest try not using your credit card at all really before you complete and if you are using it make sure not to go over what you declared on your mortgage application.

tinytiddles

We completed on an HSBC mortgage in August and as part of the application I stated that I would pay off a credit card balance prior to completion (the offer wasn’t conditional on this mind). I literally did this a week before completion and probably only a couple of days before the funds were drawn down by the solicitor. I wasn’t asked for any proof that this had been done and I doubt that the payment would have been visible via Experian or the like either. So personally I’m not convinced they do any - or if they do it is very soft. Good luck with your purchase.

Rachel*

Thanks for the replies! 

I checked my Experian score the other day and it’s lower than before (but still in the ‘good’ section) - I’m assuming this is because of the checks that HSBC done when processing my mortgage. It’s also showing £99 on a credit card, which is from December but has been cleared (before the bill was due as well) - I have proof that my credit card balance is £0 so I’m guessing this wouldn’t be an issue? 

mh_ww

Rachel* said:

Thanks for the replies! 

I checked my Experian score the other day and it’s lower than before (but still in the ‘good’ section) - I’m assuming this is because of the checks that HSBC done when processing my mortgage. It’s also showing £99 on a credit card, which is from December but has been cleared (before the bill was due as well) - I have proof that my credit card balance is £0 so I’m guessing this wouldn’t be an issue? 

Ignore the 'score', it means nothing. It's the actual data that will matter and, and if there's been no changes such as new credit accounts, significant increases to debt or missed payments etc etc you should be absolutely fine. And that's only if they happen to decide to run a check on you in the first place.

CSL0183

Your solicitor may ask you to send updated bank statements from the deposit account prior to transfer and completion but I think this is more down to laundering checks rather than credit checks. 

FTB_crossed

Unless there's a material change or the mortgage offer has expired and needs extension, they won't do the full credit check. Although I was told by the lender itself that they would do soft credit check which doesn't show credits and will only be for ID verification purposes and to make sure that you haven't defaulted altogether.
Any personal review would be appreciated if someone has their mortgage cancelled or suspended if they had more debt than at the point of offer.

roosterpotatoes

This is a question where there is no definite answer.  Some lenders will do a final credit check on completion (part of their compliance, some won't). I always tell clients never to take out more credit between app and completion and not to overspend on credit cards to eliminate the 'just in case'. Some lenders WILL do a final credit check when they receive the certificate of title (COT) from the solicitor, some won't.  

Making reference to tinytiddles, no, lenders will not always check that you have repaid credit commitments stated to be repaid on the app, but it is a condition of your offer and you are obliged to fulfil that requirement prior to completion. If the lender was to check, they could revoke the offer and your purchase/remortgage might not complete.

You will not have to provide further bank statements or proof of income, they might run another credit check. The only time when lenders have been more cautious is when you have previously been furloughed or self employed and have received gov assistance. This is all about lowering/minimising risk, less risk, the better.