How long do credit card applications effect your chances of getting a mortgage for?

evosy1978

As the title says really. Also Why do they effect your chances?


Thanks for any help

evosy1978

any thoughts?

dunstonh

Too many credit applications in a short period will damage your chances.

Empty_pockets

They are shown on your credit report for 1 year.

evosy1978

thanks

is 2 too many? Ive had the amex 5% cashback and then 2 months later Ive had the halifax clarity for overseas spending.

Also why are they regarded as bad by mortgage lenders as I curious?

ta

dunstonh

two in a 6 month period could damage your ability a little.

Also why are they regarded as bad by mortgage lenders as I curious?

It shows that you have had a spurt of increased lending in a short period. Usually a sign of someone in financial trouble or going to commit fraud.

evosy1978

OMG

this is soooo un true. both are set up to be re-paid in full at the end of the month. Ive had the one to take advatage of the cashback, and the other so theres less fees when spending abroad. (this one will only be used for one week, cometh the time of applying for mortgage)

Would a mortgage lender not check to see if Ive defaulted on them etc, or would they just PRESUME i have?

It seems very unfair. Ill be after a £150,000 mortgage and Ill have 25% to put down.

p.s we didnt realise we would be going for mortgage upon obtaining the cards.

dunstonh

Would a mortgage lender not check to see if Ive defaulted on them etc, or would they just PRESUME i have?

No, they would check. However, the concern would be that you have recently increased your debt in quick succession with multiple lenders before you have taken on a massive liability (the mortgage). If that is what you are doing before you are on the mortgage, what are you going to be like afterwards?

If you havent borrowed anything or much on them then it will have far less impact, if any. Although it would be noted and checked.

It seems very unfair. Ill be after a £150,000 mortgage and Ill have 25% to put down.

It also indicates that you may have borrowed the money if you have borrowed money on those new cards. If there is borrowed money on the card it will also reduce the amount you can borrow.

Put yourself in their shoes. If you were going to lend someone money wouldnt it concern you if you knew the person had been taking out credit elsewhere in multiple places?

It doesnt mean you get a decline. It just means you may have some explaining to do and they will decide to accept that explanation or not. If your income is good and you are not pushing any limits on underwriting it may not even be mentioned by them.