Decisions in principles....another one?

callmechar

We had an issue last yr, first looked for house in Sept. First time buyers. Got DIP from Skipton in September. Then we found a house the EA bullied us (we were naive to the process) into meeting with their mortgage adviser who did another DIP. Didnt want this at the time, reluctantly agreed. Didnt proceed with this house.

After this we closed all debts we had (hubbie had 2 loans which we paid off), unused credit cards closed. No debts.

Looked on noddle - score dropped for me from 5/5 to 3/5 and husband 4/5 before to 3/5! I panicked (know these scores are useless) - and did DIP from Post Office. These are only valid for 30 days. This expired.

We found another house and offer accepted yesterday. To get ball rolling I went to PO website, first stage in application is DIP which we got - BUT there are issues with this house and we are not proceeding.

How badly is this affecting our credit worthiness and credit scores? We have no debts (only my student loan). No defaults, CCJs etc. We have 10% deposit

callmechar

Anyone????????

MoneyMagic01273

I believe the checks that are made by most mortgage lenders at the "agreement in principle" stage are usually defined as "quotation" searches, which do not have a negative effect on your credit score.

Only full mortgage application searches - made at the full application stage are defined as full credit application searches and it is these that can potentially have a negative effect on your credit score.

As long as you are just obtaining AIPs from lenders and not making full applications, your score should be fine.

If in doubt you usually can check your credit files free online with creditexpert.com (experian) and equifax by taking advantage of their free 30 day trials . You can then verify these lender searches and confirm they are all categorised as a "quotation"

callmechar

Thanks. I am with Noddle. They do not state they are quotations on there, says "Checking Credit Application"

MoneyMagic01273

callmechar wrote: »

Thanks. I am with Noddle. They do not state they are quotations on there, says "Checking Credit Application"

Ah ok - I'm not familiar with Noddle to be honest. And it may work differently for different lenders searches AND different credit reference agencies/services.

I only know that my recent mortgage agreements in principle show on experian as quotation searches, which do not impact your credit score.

Fingers crossed someone else more knowledgable than me can swoop in to help you