Exchanged.. do lenders do further checks?

Gettingthere987

Hi there.

I have a mortgage offer with a lender that has only used one single credit agency throughout the whole process. I have now exchanged on my new property and am due to complete within a month.

I would like to make a purchase for the new house of something big, but necessary,  but it will be financed with a personal loan.

The loan company 100% use a different agency to the mortgage lender company, and I am not stretching myself financially. My question is -  Do credit checks usually take place between exchange and completion?

And if they are two completely different agencies being used, do that also protect the information from being seen.

I'm not trying to hide anything, but also trying to be as squeaky clean and careful as I can. Yes I know I could wait to make the purchase, but it's a boiler and heating system that's necessary and i've got it for a bargain price if I can buy now... Thank you for your help.. 

Postik

I don't know the answer but personally I would not risk it.  Imagine if you go ahead and the lender does do a further check and finds out and rejects your application.  The saving on the boiler will pale into insignificance compared to what you'll lose.

ACG

Your not trying to hide anything? Checking which credit agencies mortgage lender and loan company use and holding off until you know the mortgage lender will not do any further checks, thats not someone who is not trying to hide anything. 

But to answer your question, lenders reserve the right to check. Its unlikely, but possible. 

MFWannabe

Gettingthere987 said:

Hi there.

I have a mortgage offer with a lender that has only used one single credit agency throughout the whole process. I have now exchanged on my new property and am due to complete within a month.

I would like to make a purchase for the new house of something big, but necessary,  but it will be financed with a personal loan.

The loan company 100% use a different agency to the mortgage lender company, and I am not stretching myself financially. My question is -  Do credit checks usually take place between exchange and completion?

And if they are two completely different agencies being used, do that also protect the information from being seen.

I'm not trying to hide anything, but also trying to be as squeaky clean and careful as I can. Yes I know I could wait to make the purchase, but it's a boiler and heating system that's necessary and i've got it for a bargain price if I can buy now... Thank you for your help.. 

is it really worth risking it? Can you imagine if your mortgage got pulled because of this?! 😱
then boiler and heating system wouldn’t be a bargain, a very expensive mistake 🤷‍♀️

Gettingthere987

Thanks everyone for your help. I haven’t moved in 20 years so I think some people have taken my naivety for something else. Thank you anyway for your help I just wanted to know if they check in between exchange and completion. Have a nice evening. 

ACG

Im not bothered about what you are doing, despite being a mortgage broker I live in the real world. I know what you want to do goes on. 

But you are saying you are not trying to hide anything, your actions say otherwise. You have not just asked if it can be done, you have gone to the extremes of checking what credit agencies they use. 

amnblog

You should not be taking new, 'big' lending out between Exchange and Completion - it leaves you (regardless of likelihood) exposed to a potential mortgage reduction or rejection.

A silly move.

Gettingthere987

I can understand everyone's harsh comments. I suppose I would say the same, perhaps not so mean.. 

I am a single mum trying to do my best for my children. Thank you for your help. Perhaps i will seek help elsewhere again, I know the Citizens advice were a bit kinder when I sought help last time. Thank you everyone, have a nice evening. x

cymruchris

Realistically I wouldn't do a thing credit wise until the mortgage is done and dusted. Why take the risk?

Yes the boiler might be on special offer - but realistically - there'll be another special offer further down the line.

It's good to save a few £££ but not at the risk of losing a mortgage.

kingstreet

Regardless of which CRA is used, the search will appear on the other CRA versions of your credit file. We always say "no applications for new credit between agreement in principle and completion."

Exchange of contracts has little importance to lenders but it does to you. Don't take unnecessary risks.

kingstreet

Gettingthere987 said:

I can understand everyone's harsh comments. I suppose I would say the same, perhaps not so mean.. 

I am a single mum trying to do my best for my children. Thank you for your help. Perhaps i will seek help elsewhere again, I know the Citizens advice were a bit kinder when I sought help last time. Thank you everyone, have a nice evening. x

Mean? Three mortgage brokers share their experience and you think bluntly reported experience is mean?