Buying a home is exciting, but the period before mortgage completion can also be a little stressful. Whether you’re buying a residential property or a buy-to-let property, with a fixed or variable mortgage, it’s important to keep things steady before you officially complete the sale.
Doing the wrong things at this stage can delay your mortgage or even cause your application to fall through.
At BSL Financials, we want to help you avoid common pitfalls that could complicate your UK mortgage process. This guide explains what you should avoid doing before completion, with clear examples to help keep your home-buying journey on track.
What Does “Completion” Mean?
In UK property transactions, completion is the day the property legally becomes yours.
This is when:
- The mortgage funds are transferred to the seller.
- The purchase is legally completed.
- You become the legal owner of the property.
- You normally receive the keys to your new home.
Until then, you’re in a critical waiting period where your mortgage offer is still being processed and final checks may be carried out.
Why Is It Important to Avoid Certain Actions Before Mortgage Completion?
Your mortgage agreement is based on your financial situation and credit report at the time of your application.
Any significant changes before mortgage completion in the UK can affect your lender’s decision.
That’s why certain actions during this period can be risky. Keeping your circumstances stable can help protect your mortgage offer and reduce the risk of last-minute surprises.
What Should You Avoid Doing Before Completion?
Here is a quick overview of some of the main things to avoid before your mortgage completes:
| What to Avoid | Why It Could Cause Problems |
|---|---|
| Large purchases on credit | May increase your debts and affect affordability |
| Changing or leaving your job | Could change the income used for your mortgage assessment |
| Opening or closing credit accounts | May affect your credit profile |
| Missing payments | Could damage your credit history |
| Moving large amounts of money | May lead to additional lender or solicitor checks |
| Providing incorrect information | Could delay legal or mortgage checks |
| Making property changes early | You do not legally own the property until completion |
1. Don’t Make Large Purchases on Credit
Taking out new credit, such as buying expensive furniture or electronics using a credit card or store finance, can affect your credit score or increase your debt-to-income position.
Lenders may review your financial circumstances before releasing the mortgage funds, so suddenly appearing to owe more can raise concerns.
Avoid:
- Financing expensive furniture.
- Taking out a new personal loan.
- Buying a vehicle on finance.
- Making large credit card purchases.
- Using store finance for major purchases.
Example:
Mrs. Smith booked a holiday on a store card just before completion. The lender saw her increased debt and delayed the final mortgage release, which pushed back her completion date.
2. Avoid Changing Jobs or Quitting Your Job
Your lender will assess your income and employment status before granting a mortgage.
Changing jobs, particularly without a confirmed new position, can cause the lender to reassess your circumstances and may affect your mortgage offer.
Before changing employment, consider speaking to your mortgage adviser if your property purchase has not yet completed.
Example:
John planned to switch companies before his house purchase was complete. His new employer hadn’t confirmed his salary yet, so his lender delayed completing the mortgage, causing a frustrating postponement of moving day.
3. Don’t Close or Open New Credit Accounts
Closing accounts might seem like a good way to improve your credit score, but it can sometimes have the opposite effect.
Similarly, opening new credit accounts before mortgage completion can increase your available credit or liabilities and change the financial information assessed by your lender.
Try to avoid:
- Applying for new credit cards.
- Opening store cards.
- Taking out personal finance.
- Closing long-standing credit accounts without advice.
- Making unnecessary changes to existing borrowing.
Example:
Sophie closed an old credit card before completion, which affected her credit utilisation ratio, leading her lender to review her application again and delay the mortgage.
4. Avoid Missing Payments on Existing Bills or Loans
Continue paying all your bills and existing credit commitments on time before mortgage completion.
Missed or late payments can affect your credit profile and may cause a lender to reconsider your mortgage offer if further checks are carried out.
Continue making payments on:
- Credit cards.
- Personal loans.
- Car finance.
- Existing mortgages.
- Household bills.
- Other regular financial commitments.
Example:
Mr. Patel missed a couple of credit card payments when moving into temporary accommodation. This caused a credit check failure at the final stage and delayed completion.
5. Don’t Change Your Bank Accounts or Move Funds Without Notice
Lenders and solicitors want to see a clear picture of your finances.
Moving large sums of money between accounts without a clear explanation can result in additional questions or requests for evidence, potentially slowing down the mortgage completion process.
This can be particularly important where money relates to:
- Your deposit.
- Gifted deposit funds.
- Savings.
- Property purchase costs.
- Large transfers between bank accounts.
If you need to move significant amounts of money before completion, keep clear records and discuss anything unusual with your mortgage adviser or solicitor.
6. Don’t Provide Incorrect or Incomplete Information
Be honest and thorough in all communications and documents provided to your lender, mortgage adviser and solicitor.
Incorrect, incomplete or inconsistent information can result in additional checks and potentially delay your mortgage approval or completion.
Make sure information relating to your:
- Income.
- Employment.
- Deposit.
- Credit commitments.
- Property.
- Personal circumstances.
is accurate and up to date.
7. Don’t Make Major Property Changes
If you’re buying a property and plan to make major renovations or other changes after completion, that is different.
However, you should not start work or make alterations to the property before you legally own it, as this can create legal complications.
Wait until mortgage completion and legal ownership have transferred before beginning renovation or improvement work.
Practical Tips to Keep Your Mortgage on Track
Keeping your financial and personal circumstances stable during the period between your mortgage offer and completion can help reduce unnecessary complications.
Before completion:
- Keep your financial situation stable from your mortgage application until completion.
- Inform your mortgage adviser if anything changes in your employment or financial circumstances.
- Avoid impulse purchases on credit.
- Pay your bills and existing credit repayments on time.
- Keep records of significant financial transactions.
- Respond quickly if your lender or solicitor requests additional documents.
- Discuss any concerns with your mortgage broker or lender promptly.
What Happens If You Make Financial Changes Before Completion?
If you do something that changes your financial circumstances before mortgage completion, your lender may need to reconsider parts of your application.
Depending on the circumstances, the lender might:
- Recheck your credit report.
- Reassess your affordability.
- Ask for updated bank statements.
- Request new payslips or employment information.
- Ask for explanations about financial transactions.
- Request additional paperwork.
- Delay releasing the mortgage funds.
- Withdraw the mortgage offer altogether.
This can cause delays, additional stress and, in more serious circumstances, could put the property transaction at risk.
Can a Mortgage Offer Be Withdrawn Before Completion?
A mortgage offer does not necessarily mean that nothing can change before completion.
If there is a significant change in your financial circumstances, employment, credit history or the information originally provided to the lender, the lender may review the application again.
This is one reason why keeping your circumstances as stable as possible before UK mortgage completion is important.
What Should You Do If Your Circumstances Change Before Completion?
Sometimes changes cannot be avoided.
If something significant changes after receiving your mortgage offer, such as your employment, income or financial commitments, speak to your mortgage adviser as soon as possible.
Do not wait until completion day.
Your adviser can help you understand whether the change is likely to affect your mortgage and what information the lender may require.
Final Thoughts
Mortgage completion is the final step in a complex property-buying process.
Being patient and cautious during the period before completion is important. Avoid making major financial changes, continue making your existing payments on time, and stay in close contact with your mortgage adviser.
Keeping your finances stable can help reduce the risk of unnecessary delays and make the journey from mortgage offer to completion smoother.
At BSL Financials, we’re here to help you navigate the UK mortgage process with confidence. If you have any questions or need advice on your mortgage journey, speak to our team.
Ready to Move Forward With Your Mortgage?
Contact BSL Financials today for friendly, professional support tailored to your circumstances.
Disclaimer: This blog provides general guidance and does not constitute regulated financial advice. Please speak to a mortgage adviser for personalised assistance.
