Mortgage Offered? Here is what not to do!

When you are buying a new property with a mortgage, receiving the mortgage offer is usually the time where you can sit back and relax. If your lender has issued you with a formal mortgage offer, are you adhering to their terms and conditions?

In most cases, within your mortgage offer will be a clause advising you that you will need to make the lender aware if there are any changes in your personal circumstances. That usually includes your employment as well as your credit profile.

Some people believe that once you have recevied your mortgage offer, you are home and dry and can do what you want. However, this is not the case. Taking on more credit commitments such as loans and credit cards after you have made your application should be declared to your lender. This may result in a change in how the lender calculates your potential affordability and ultimately the loan they offer you.

At any point until completion, a lender can obtain a new copy of your credit file. If you have taken on new commitments and not declared them, they could alter their loan or remove their offer entirely. even if you have exchanged contracts. So, if you are thinking of changing your circumstances between applying for your mortgage and completion, please consider the implications in full.

This article is for general information purposes only and does not constitute advice. The author does not accept liability for any errors or omissions. Readers are recommended to take professional advice from a suitably qualified professional regarding their own personal circumstances.