getting many mortgage agreements impairs credit ratings is this true?

donutw

I am trying to buy my first house. I was told by a mortgage advisor attached to an estate agent that each time you ask companies to give an agreement-in-principle for a mortgage this leaves a "footprint" on your credit score which is viewed negatively by any subsequent companies that you ask - is this really true? If so, at what point do they "stamp" on your record- each time someone does a credit search on you? Advice from the more-experienced gratefully appreciated!

dunstonh

Yes this is true. Same applies to credit cards, loans and current accounts.

herbiesjp

This is true - some lenders are looking into this, and working on systems that will not adversely affect the client if searches are carried out. But as it stands, too many footprints are not a good idea. Therefore if you want to get an agreement you should only do this with a scheme you REALLY like, and with a lender the adviser knows you will get the mortgage with.