Do mortgage lenders check credit before completion?
Not all mortgage lenders will credit check you before completion and it is hard to know who will and who won't but your mortgage broker may have some experience of this after dealing with several mortgage lenders.
If a mortgage lender does perform a last minute credit check on you it will be to ensure your circumstances haven't changed since the mortgage offer as this might make you ineligible for the mortgage.
Multiple credit checks from the same mortgage lender will typically not affect your credit score.
If you are worried that you have had a change in circumstances since you got your mortgage and this could potentially cause the mortgage lender to decline you then you should speak with your mortgage broker who will have different options on how to handle the situation.
What will a credit check before completion reveal?
A mortgage credit check before completion could reveal the below:
- New credit being obtained since your mortgage offer
- A fall in your credit score
- New negative marks added to your credit file such as CCJs, bankruptcy, IVAs, a debt management plan or a default.
- A change in employment will also normally not appear on your credit file.
A final mortgage credit check before completion is more likely when you have an off plan property(one which is built after a mortgage offer is gotten for it) or when your mortgage offer expires before you complete.
The two cases have to do with the time between when the mortgage lender gives you a mortgage offfer and when you complete on the house purchase.
In general, you should avoid taking on new credit when making a mortgage application and avoid any applications that may search for your credit file.
You should also avoid using your credit cards or overdraft facilities if possible before completing your home purchase.