Concurrent Mortgage Applications

Dranny

Is applying for mortgages with two firms at the same time illegal, or anything?

I have applied for two similar products, asking for £60k on a 60% LTV. Both to me are good rates, and offer me no fees until completion - so I thought it prudent to hedge my bets and see what I'm offered at the end of the process.

The product I marginally prefer is with the Chelsea, and on their written application form, they asked if I had any other applications ongoing. I answered, yes.

I have now had a further information request letter through the door and action point 1, is confirming I have stopped the other application.

Do I legally HAVE to stop the other application? Or is it for moral reasons or something?

Any help appreciated.

opinions4u

Perfectly legal.

The only downsides can be if there are multiple fees to pay (e.g. valuations) and doubling the number of credit searches recorded on your credit file.

Chelsea are, however, quite within their rights to refuse to proceed until they know you are not going ahead elsewhere.

They won't be wanting to process your mortgage (which isn't cheap) if they don't think they're going to actually lend you the money.

Dranny

The fees on my side are nil until completion.

Free legals + valuation, so I thought I was being prudent to run the two along side eachother.

As usual, I encounter problems after setting out with the best of intentions!

devon_guy

I did the self same thing. I applied with the Leeds and got accepted on a rather poor rate but decided to keep it as back up. Then applied and got approved for the Halifax.

Dranny

I don't think I'm doing anything wrong, so think I will take my time in cancelling the other application.