Mortgage Guide
Do lenders credit check before completion?
They can, and often do - but there isn't one universal process followed by every mortgage lender.
Your credit history will normally have been checked as part of the mortgage application,
and some lenders may carry out further checks or revisit your application before completion.
That's why it's worth keeping your finances steady between receiving your mortgage offer and getting the keys,
rather than assuming the mortgage is completely secured once the offer arrives.
Quick takeaways
- A full mortgage application normally involves a full credit check, but lenders do not all follow exactly the same checking process afterwards.
- Receiving your mortgage offer doesn't make later financial decisions and changes irrelevant.
- New borrowing, missed payments or significant changes to your finances can matter before completion.
- If you're considering a significant financial change before completion, asking your mortgage adviser first is much easier than trying to fix a potential problem afterwards.
When do mortgage lenders carry out credit checks?
Credit checks can happen at different stages of the mortgage journey, and the exact process varies by lender.
Agreement or Decision in Principle
Some lenders use a soft credit search at this stage. A soft search does not usually leave a footprint that other lenders can see in the same way as a hard search.
Full mortgage application
When you make the full application, lenders normally carry out a hard credit check alongside the wider assessment of your income, commitments and mortgage application.
There isn't a universal “one final credit check” rule. Some lenders' processes may include further checks before completion, while others may have completed their standard financial checks earlier. What matters is that the lender can still act if information relevant to the mortgage changes.
Can a lender credit check you after issuing the mortgage offer?
The fact that you've received a mortgage offer doesn't necessarily mean your lender won't look at your application again. If its process includes another check, or something happens that requires the lender to reassess your circumstances, your credit position may become relevant again before completion.
Not every lender automatically performs another full credit search immediately before releasing the mortgage funds. They don't all operate in exactly the same way.
The simple, practical advice is: try not to make significant changes to your finances without checking what they could mean for the mortgage first.
Still waiting to complete?
Our Mortgage Offer to Completion Guide explains what happens between receiving the offer and finally getting the keys.
What could affect your mortgage between offer and completion?
Most buyers reach completion without a problem. But because the lender made its decision using a particular picture of your finances, significant changes to that picture can sometimes need looking at again.
Taking out new credit
A new loan, credit card, car finance agreement or large purchase on finance can create a new monthly commitment that wasn't present when the lender originally assessed affordability.
Missing or paying something late
A new missed or late payment may change the credit information available to the lender and can be more significant when it appears during an active mortgage application.
Your borrowing increases significantly
A substantial increase in existing balances or other commitments may alter the wider financial picture, particularly if affordability was already fairly tight.
Your circumstances change
Credit isn't the only thing that can matter after an offer. A significant change to employment, income or another part of your application may also need discussing with the lender.
The same habits matter before and after application
We've covered some of the common financial decisions worth thinking about in our guide to preparing for a mortgage application.
Can taking out new credit before completion affect your mortgage?
It can. The important thing isn't that every use of credit is automatically a problem (it isn't). The issue is that a new commitment can change the information the lender originally used to decide the mortgage was affordable and acceptable.
Imagine you applied with no car finance and then, while waiting to complete, took out a substantial monthly agreement on a new vehicle. Your income may not have changed, but the amount already committed every month has.
The same principle can apply to other borrowing. That's why we'd rather a client asks us “Will this matter?” before taking the credit than after they've already signed the agreement.
Does checking your own credit report affect your mortgage?
Simply checking your own credit information is not the same thing as a lender's hard application search.
In fact, understanding what's on your report can be useful. It gives you an opportunity to spot inaccurate information or something you didn't realise was there, rather than finding out for the first time during a mortgage application.
Do lenders credit check on the day of completion?
There isn't a rule saying every lender must run a new full credit search on completion day. Lenders have different internal processes, and checks can take place at different stages.
What is important is that your mortgage still has to reach completion successfully. If something material has changed since your application or offer was approved, don't rely on the assumption that the lender won't find out because you're close to getting the keys.
If you're unsure whether something that has happened will matter, tell your adviser. They can look at the actual lender and circumstances rather than guessing.
You're waiting to complete. What should you do?
You don't need to put your entire financial life on hold. The aim is simply to avoid creating unnecessary surprises while the mortgage is still progressing.
Keep your usual payments running normally
Keep an eye on bills and existing credit commitments so that avoidable late or missed payments don't appear during the mortgage process.
Ask before taking significant new credit
If you're thinking about finance for furniture, a car, a loan or another sizeable commitment, check with your mortgage adviser first.
Tell your adviser if something important changes
A new job, reduction in income or another significant change doesn't automatically mean the mortgage will fail, but your adviser needs the chance to establish whether the lender needs to know.
Don't panic if the lender asks another question
A request for clarification, an updated document or another check does not automatically mean there's a problem. Find out what the lender actually needs and deal with that.
Could a credit check cause a mortgage offer to be withdrawn?
Potentially, if a later check or updated information reveals something significant enough that the lender can no longer proceed with the mortgage on the basis originally agreed.
But it's important not to turn that into “one credit check means my mortgage offer is at risk.” The circumstances and what has actually changed are what matter.
If you're worried about an offer already issued, we've covered the wider reasons and what happens next in our guide: Can a mortgage offer be withdrawn?
Can the lender ask for updated documents before completion?
Yes, depending on the circumstances. If significant time has passed, something has changed or the lender needs clarification, it may ask for updated information rather than relying solely on documents supplied earlier in the application.
Our Mortgage Application Documents hub covers many of the documents you may need, including payslips, bank statements and other evidence.
And if it's updated bank statements you're trying to obtain, our bank statement hub has individual download guides for the major UK banks.
Related mortgage guides
FAQs
No single process applies to every lender. A full credit check normally forms part of the mortgage application, but lenders vary in whether and when they carry out additional checks before completion.
Some lenders may carry out further checks or revisit your circumstances after issuing an offer, but it isn't accurate to say every lender automatically runs another full search. The lender and circumstances matter.
Normal everyday use isn't automatically the same thing as taking on a substantial new financial commitment. What matters is whether your borrowing or monthly commitments change significantly. If you're planning a large credit purchase, ask your mortgage adviser first.
It can because car finance creates a new monthly commitment that may affect affordability. If you're planning to take out car finance while a mortgage is progressing, speak to your adviser before entering into the agreement.
A lender may reconsider an offer if new information means the mortgage no longer meets its criteria, but another credit check does not automatically mean an offer will be withdrawn. The result of the check and the circumstances behind any change are what matter.
Thinking about making a financial change before completion?
Ask us first. We can look at your mortgage, your lender and what you're planning to do, and help you understand whether it could affect the application.
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