In this brief guide, we are going to answer the question “do Halifax credit check after mortgage offer“.

Do Halifax credit check after mortgage offer?

Yes, Halifax may indeed credit check after a mortgage offer has been given and before completion. This will be done to ensure there hasn’t been any significant change in circumstances of the borrower which may affect their mortgage affordability.

A significant change of circumstances could be:

  • Loss of a job
  • Time off work
  • Bad credit such as bankruptcy, a county court judgement

If your circumstances have changed significantly and Halifax carry out a credit check after a mortgage offer then they may very well withdraw the mortgage offer which means you may need a new mortgage offer from Halifax or another mortgage lender who is willing to lend to you.

The issue with this is that getting a mortgage offer shortly after you have been “rejected” by one mortgage lender may prove to be a difficult task as the new mortgage lender will likely see the Halifax mortgage credit check on your credit profile and inquire further into why Halifax didn’t offer you a mortgage. They may then reject you on the same basis.

It may also be the case that a mortgage lenders automated decision-making system spots that you have had a credit check on your profile recently and rejects you simply on that basis.

In some cases, the Halifax credit check which is done after the mortgage offer could be done on a random basis and not for every mortgage application but these are internal guidelines to which only Haliufax ae privileged to.

How to avoid getting rejected after a Halifax mortgage offer?

To avoid getting rejected if Halifax carries out a credit check after the mortgage offer you should avoid doing anything which may decrease your mortgage affordability.

That being said, not everything is under your control.  If your employer decides to fire you from your job there is very little you can do about this. 

This is the same case if you decide to take time off work due to getting pregnant.

Some of the things which are in your control are:

  • Avoid taking on any borrowing 
  • Avoid making any credit applications
  • Avoid missing any credit repayments
  • Avoid any gambling
  • Stay in the same job in which you were assessed on

Use a mortgage broker

You may want to consider using an independent mortgage broker to get a mortgage.

Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases.

This could be over 11,000 mortgage products. This may have some advantages rather than going directly to a mortgage lender.

A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you based on your mortgage affordability.

After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle. 

This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your mortgage is indeed a possibility before you make a full mortgage application. 

Once you have found a home you want to buy and are satisfied with the mortgage offer for your mortgage then the mortgage broker will then look to get you a mortgage offer.

This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month.

It will also contain information on if there are any limits such as early repayment fees, or annual overpayment limits.

If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer.

Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it.

They will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.

In this brief guide, we answered the question “do Halifax credit check after mortgage offer“.

If you have any questions or comments please let us know.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.