Accord financial check before completion

abden82
Forumite Posts: 5
Forumite

Hi, do Accord run financial check between exchange and completion or just credit check?
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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 practice0
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Credit check or ask for statements and payslips?0
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All lenders have an internal audit function that randomly selects and reviews applications.0
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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 practice0
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They didn't for us. We completed 1st April. However, like others have said be careful with taking on any new credit commitments.1
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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.
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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
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.0
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