Will new mortgage application ruin existing offer & affect my credit?

a1pacino

Hi all,
I am a FTB and have recently had my offer accepted on a property and I have had a few mortgage offers, one with a broker which i didnt go through with, one with halifax that i didnt pursue either and one with RBS which was a better deal than other two at 6.39% 5yr fixed. I have had the RBS application accepted and the property valued by the bank which has come through fine. I have the mortgage deed but have not posted it back yet. I have just now come across a better mortgage with Yorkshire Building society at 5.89% 5yr fixed- I would like to find out if I can still change to the YBS offer and if I allow YBS to do the application could it affect my credit rating to the point I do not get accepted for that and cant go back to RBS or does the RBS offer legally stand now its been agreed (it says the offer is valid until the end of April 2010) and property valued?I would hate to lose out completely by applying for another mortgage but YBS is quite a bit cheaper than RBS and over 5yrs would be quite substantial. Also is my mortgage valuation transferable to YBS so I wont have to get another one done.? Any advice would be really appreciated.

Many thanks in advance guys

ferris57

I am in exactly the same position. Have a formal offer from RBS. I was originally turned down by accord but accepted by my bank which essentially means I don't lose the house I'm trying to buy but have to pay 6.89%.

Now I have a firm mortgage offer I would like to try elsewhere just in case I can get a cheaper rate (Post office for example) but am worried doing so might in some way affect my mortgage offer from the rbs?

Can I safely apply elsewhere while keeping the rbs mortgage offer in hand? or could I end up being refused by someone and rbs in turn recending their offer?

Any advice would be greatly appreciated.

Hugbubble

I'm no expert (so someone may correct me) but if RBS have done the survey and sent the documents for you to sign, then the offer is safe. However, having this, and the other credit checks on your record may mean the YBS application is less likely to be successful.

I don't think any lender would let the valuation be transferred though so you will pay fees twice.

luckyfool

An offer is never 100% and can be withdrawn at any time. Many lenders will do a final credit check before allowing funds to be drawn down and it is not unheard of (but very rare) for something to have changed so much at that final credit search that a case suddenly fails the credit score and the lender withdraws the offer. Normally for this to happen its more likely to be something like big new unsecured debts, or a default or ccj, but it is possible.

You would probably be ok, but there are no guarantees.

ferris57

Just a quick update. First of all thank you for your responses. I appologise for not replying sooner but as you can imagine I was a bit preoccupied.

Well the banks won. I didn't want to risk my existing offer and so I stuck with the RBS.

On the bright side I got the house! costing me an extra £150 a month but to be honest we are just delighted we got the mortgage and the house we wanted. If we hadn't been able to afford the extra we would have risked it but for our peace of mind and getting our dream house it was worth it.

My credit wasn't great thanks to not being on the electoral roll, however I have addressed that and by the time I am ready to remortgage all should be good. Probably cost me an extra 5 or 10k though overall so the lesson is simple. Get on the electoral Roll!