Mortgage offers

pledgeX

Hello all.

First off, sorry if this is the wrong section, wasn't quite sure where to put it! I'm in the process of getting a mortgage but I have a question regarding the credit checks they do.

I was always under the opinion that it was a bad idea to apply for credit in multiple places over a short space of time. If this is the case, how are you supposed to shop around for mortgages? As everywhere I've gone so far have only been able to give a very rough guess (or have simply refused) to give me any kind of quote without taking all our details and doing a credit check.

I understand they can't give me a mortgage without doing a check at some point, but I don't want to 'waste' a credit check if they're going to give me naff offer anyway!

Do the checks they do show on credit reports for other mortgage lenders to see?

Also, what about brokers? Would they run their own credit check or do they not need that info until we agree with a particular lending provider?

Finally, if they all need to do a credit check and there's no way of getting round it, what would be the maximum number of enquiries I should make in say the space of a month?

Thanks very much for any help.

Senior_Paper_Monitor

A broker will assess your credit status from the financial data/documents you provide and a crediit report if appropriate (and frankly a good precaution even if you are not expecting any problems - applying for your own report does not count as a 'credit application hit').

They will match this to the detailed criteria/policy of the lenders before recommending proceeding to a stage that generates a credit enquiry.

This means a high percentage of applications will 'sail through'.

If your credit is good and income simple PAYE with a good income:borrowing ratio and not pushing high LTVs you can simply afford to collect headline rates, take yourchoice and apply reasonably confident of a success (i.e no need for a broker - although even in thosecircumstances you will be surprised how often a broker can raise an issue or option that a layman hasn't considered) BUT ......

If you don't fit the above definition (and/or you simply want some help and ADVICE) use a broker.

Be aware that a bank or most estate agent brokers will be of the attitude that a credit check (i.e an application) is good - but that is primarily for them to see whethe you are a real punter, not for you - and yes, too many credit checks are bad. Three of four credit checks in a month should not be a problem but you don't want it going much higher - and bearing in mind that buying a house/mving etc will also probably number of other actions where credit checks occur.

Burridge60

Computer Says NO! syndrome does seem to be permeating its way into our financial services industry but that's the price we now pay for a regulated cautious money world where systems and controls are rife and no human is trusted to make a sensible decision any more.

Please don't have multiple checks done. Explain your needs and evidence your income during a meeting with your lenders customer service representative. They should tell you that you are going to be credit searched before they do so to allow you to give consent. They should also tell you that it will leave a "footprint" of their search on your file but they are not obliged to ask you if you have had other searches done before (only about other credit applications you may have made or been declined for). It's up to you to tell them.

Obtaining your own credit file is a great idea but don't necessarily get lured into a monthly payment arrangement costing £15 or more when a £2 Consumer Credit Act report is all that you need.

pledgeX

Thanks for the replies

I don't think we should have a major problem. We have a 65k deposit and are looking at around the 200k house mark (so 135k mortgage). That is pretty much dead on 4x our joint salary, so is a little high, but plenty of online calculators seem to suggest this will be fine, and people we've spoken to so far also have said we would be ok getting a mortgage at this price.

Our credit should also be fine, although not anything special. Both on electoral role, never any late payments, I've had a credit card for the last year.

So far we've had one credit check done by the Halifax which came back fine as they gave us a decision in principle for a 145k mortgage.

I would like to use maybe 1 or 2 brokers, to see if either can beat a 4.09% 5year fixed I've seen at Northern Rock. But don't want to 'waste' a credit check on a broker if that could mean Northern Rock reject us due to having a couple of credit checks done recently.

Thanks again.

strawberries1

Hi all,
Has anyone ever used this site to get an indie Mortgage Advisor?
http://www.mortgagecalculator.org.uk/mortgage-advice.html
I'm a FTB trying to get Mortgage advice and hopefully a mortgage.
Thanks.

Senior_Paper_Monitor

The problem with the type of site you are referring to (and I'm not sure this looks the best of them) is that your lead will simply be sold to the highest bidder through a handful of specialist lead sellers - other than (normally) ensuring that the winner is FSA registered/regulated/approved there is little or no 'quality control'. The lucky winner will simply phone you up and try to convert you to a customer/client. You may get a good one or you may get a poor one.

Much better to use referral (friends and family) or, if no referral available, a site like (www.unbiased.co.uk, www.searchmortgagebroker.co.uk, orwww.freeindex.co.uk) where you can at least research the lists (and in the case of the latter, the published references) provided before selecting one that you at least like the feel of.

strawberries1

thanks Senior Paper Monitor I'll ask around and hope to find a good MA. The guy I spoke to seemed ok and is indi no fee recommended 3.99 from abbey but it was only for those who already had a mortgage with them, then said 4.39%