Accord financial check before completion

abden82

Hi, do Accord run financial check between exchange and completion or just credit check?

rincha

From my experience, yes all lenders do. My broker told me just last week, one of his clients went on a spending spree 5 days before exchange/completion and racked up £6k on his credit card. The lender did a final credit search and found out. He lost the mortgage and house. I’m unsure how it all works but they all do final checks. 

If you were lending someone, let’s say £50k, wouldn’t you check them out once again before handing over the cash? 

Standard practice 

abden82

Credit check or ask for statements and payslips?

Thrugelmir

All lenders have an internal audit function that randomly selects and reviews applications. 

rincha

abden82 said:

Credit check or ask for statements and payslips?

Could be anything but most likely credit check. Why? Has your circumstances changed since applying? 

simon_or

abden82 said:

Credit check or ask for statements and payslips?

Credit check - possibly. Statement and payslips again - unlikely unless your mortgage offer has expired or need an extension.

BW1990

rincha said:

From my experience, yes all lenders do. My broker told me just last week, one of his clients went on a spending spree 5 days before exchange/completion and racked up £6k on his credit card. The lender did a final credit search and found out. He lost the mortgage and house. I’m unsure how it all works but they all do final checks. 

If you were lending someone, let’s say £50k, wouldn’t you check them out once again before handing over the cash? 

Standard practice 

Presumably the individual concerned was extremely unlucky if the card he'd used to rack up the £6k was reported to the CRA between the day from incurring the debt and the day his lender did a pre-completion credit check? Usually takes a good month for credit usage to show on a credit search? 

Vortex566

They didn't for us. We completed 1st April. However, like others have said be careful with taking on any new credit commitments.

abden82

Vortex566 said:

They didn't for us. We completed 1st April. However, like others have said be careful with taking on any new credit commitments.

What did they ask for before completion?did they just run another hard credit search?

BertieN

I have very recent experience on this. TL;DR: it's fine, don't worry!

Now in a it more detail: Not a great credit record here (but within prime limits) and just before completion the amazing guys at BT recorded a missed payment of £700+, which was not correct (I was never even with BT to begin with!). I stressed like you could not believe, considering I was just renting temporarily prior to completion, in the final part of my chain.

Long story short they do run a lot of checks. In my case, I had an initial mortgage offer, which fell through due to chain, a second offer for the one I ended up buying, another one on request for extension. At every stage they ran a credit check. And another one just before completion. No questions were ever raised about changes to circumstances.

I got the missed payment record fixed in the end, but well after completion. 

mdj1876

rincha said:

From my experience, yes all lenders do. My broker told me just last week, one of his clients went on a spending spree 5 days before exchange/completion and racked up £6k on his credit card. The lender did a final credit search and found out. He lost the mortgage and house. I’m unsure how it all works but they all do final checks. 

If you were lending someone, let’s say £50k, wouldn’t you check them out once again before handing over the cash? 

Standard practice 

For anyone reading through this forum now - this is not factually correct information.

Not all lenders do a second credit check, most do not. If you have had a change in circumstance (change of salary, new credit etc), then they 100% will. Otherwise, most will not and my broker said that 99% of the time, there are no second checks.

As others have mentioned, lenders will pull random accounts for a 2nd check for audit purposes, but this is purely random.

If your credit situation has not changed since you had your offer, you will be fine.