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Quotation Searches
Fairdo_2
Posts: 442 Forumite
Okay I have answered about this in several threads and it is now starting to bug me.
I have not always been a fan of everything Halifax have done in the past, but something that I have got to give them and the rest of their group (HBOS Group - Halifax, Bank of Scotland, Birmingham Midshires, The Mortgage Business) credit for is the fact that they use "Affordability" as a measure of lending entitlement and they are forward thinking enoughto change their approach to their "Approval In Principle" or Mortgage Promise as they call it.
They (I think Birmingham Midshires were the very first lender to adopt it) use a system now called "Quotation Search" which allows clients to find out how much they can borrow without placing a Footprint on their credit file (thus possibly having a detrimental affect on your future credit scores if you made multiple applications to find the best acceptable lender).
As they have had this in place for several months and the market is supposed to be competitive at the moment, I am suprised no other lenders have followed suit yet. Especially by those lenders that work on an affordability basis. Could this be that there is not awareness about this in the marketplace and is it not time we were able to step up some pressure to the market in order to get them to change their systems accordingly.
In my view, this is a big slap on the back to the HBOS group, because it opens up the competition to others, whilst doing an Agreement In Principle with other lenders at the moment, almost forces the customer to stay with that lender throughout (restricting competition).
Systems are available, as lenders like GMAC are able to make binding decisions online, instantly and up to 4 different credit checks with 1 footprint and I believe C&G can also make multiple checks on 1 footprint.
Does anyone know of any other lenders who now offer Quotation Searches or are we still left with the one group of lenders?
Also, what is the best way to step up a campaign so that it is not just me telling lenders individually (which is having limited impact)?
I have not always been a fan of everything Halifax have done in the past, but something that I have got to give them and the rest of their group (HBOS Group - Halifax, Bank of Scotland, Birmingham Midshires, The Mortgage Business) credit for is the fact that they use "Affordability" as a measure of lending entitlement and they are forward thinking enoughto change their approach to their "Approval In Principle" or Mortgage Promise as they call it.
They (I think Birmingham Midshires were the very first lender to adopt it) use a system now called "Quotation Search" which allows clients to find out how much they can borrow without placing a Footprint on their credit file (thus possibly having a detrimental affect on your future credit scores if you made multiple applications to find the best acceptable lender).
As they have had this in place for several months and the market is supposed to be competitive at the moment, I am suprised no other lenders have followed suit yet. Especially by those lenders that work on an affordability basis. Could this be that there is not awareness about this in the marketplace and is it not time we were able to step up some pressure to the market in order to get them to change their systems accordingly.
In my view, this is a big slap on the back to the HBOS group, because it opens up the competition to others, whilst doing an Agreement In Principle with other lenders at the moment, almost forces the customer to stay with that lender throughout (restricting competition).
Systems are available, as lenders like GMAC are able to make binding decisions online, instantly and up to 4 different credit checks with 1 footprint and I believe C&G can also make multiple checks on 1 footprint.
Does anyone know of any other lenders who now offer Quotation Searches or are we still left with the one group of lenders?
Also, what is the best way to step up a campaign so that it is not just me telling lenders individually (which is having limited impact)?
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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Comments
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I take it I'm the only one who finds this an emotive subject then???
Never mind off on a weeks holiday Tonight, so I'll try not to stew on it!I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Get Martin to mention it in his new telly prog? "Well, I'd love to advise you to shop around for a loan, but the blimmin credit companies will blob your rating" (I can write scripts - gizza job...).
As you say, heaps of people do fall into this when they're shopping round for the best deal - perhaps it will start to filter in as companies are starting to look closer at their loan books. If one company can do it, they're either taking things on trust (and perhaps knocking you back on formal application) or there is a 'no recorded search' facility at the reference agencies.
Anyway have a good hols and concentrate your searching on bars and sun...0 -
Going anywhere nice?0
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Was going to say "Only Dorset" but I don't want people from the area getting upset, so "Dorset" is the answer. That is as much as I know at the moment as I only pay for it and enjoy when I'm there.
Thanks for asking though.I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I quite like the idea of this, well spotted
"There are only two lasting bequests we can hope to give our children; one of these is roots, the other wings" - Hodding Carter
:A ~~~ Spread some good Karma ~~~ :A0 -
ManAtHome wrote:Get Martin to mention it in his new telly prog? "Well, I'd love to advise you to shop around for a loan, but the blimmin credit companies will blob your rating" (I can write scripts - gizza job...).
As you say, heaps of people do fall into this when they're shopping round for the best deal - perhaps it will start to filter in as companies are starting to look closer at their loan books. If one company can do it, they're either taking things on trust (and perhaps knocking you back on formal application) or there is a 'no recorded search' facility at the reference agencies.
Anyway have a good hols and concentrate your searching on bars and sun...
Yeah
Maybe a good idea. It would take someone of Martins calibre to get things rolling in the first place.
Let's hope he might be happy to take this up?!I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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