Mortgage application and credit rating

mrnigel

Hi! First time poster here and haven't been able to find anything specifically relating to this in the forum - apologies if I've missed it!

We've recently applied for a mortgage on a new build property and have an agreement in principle ready for a move this summer. However, for a number of personal reasons we've decided we would prefer to move next summer instead of this summer and would therefore need to pull out of the process.

We've been told that pulling out of the proposed mortgage application at this stage could negatively affect our credit score. Is this correct? If so, is there any way we can approach this in a less damaging way?

Thanks in advance!

Nige

Crinz

If its just an agreement in principle than it is just a simple credit search and will have little or no effect on your overall credit worthiness.

if you have multiple searches done in a short period of time but just one will have no impact, especially if you are delaying till next year.

no negative impact to walking away

milanos

I should have just read this rather than start a new thread! Good news.

mrnigel

Hi Crinz, thanks for the reply - really helpful.

Just wondering, would it have a positive impact on our credit rating if we waited until the bank makes us a proper offer and pulled out then? Someone told us that this would make it easier next time we apply for a mortgage, but is that true?

Cheers
Nigel