Mortgages In Principle - How Many is Too Many?

Horizon81

Everywhere I read it's a bad idea to get 'multiple' MIPs as they leave a mark on your credit history and too many look suspicious. In some places I've read you should only get 1 MIP.
I got one from one lender just a couple of weeks ago, but the way things are looking now, when it comes to take a mortgage out, I'll be applying for the mortgage through a different lender (who will no doubt need to credit check me again).

So... how many MIPs/AIPs/DIPs (call them what you want!) are too many? ie before they start having a negative impact on your ability to get credit.

betmunch

There is no set number I'm afraid, the second one could be too many. Maybe the 25th will be.

Its just one of a number of factors, and each lender with penalise previous check differently so you could have 5 and fail with one lender, then try again and 6 will be fine with the next.

If you have a valid AIP you dont need to do another until you are ready to do an application though so just leave well alone until you have agreed a price and try with your chosen lender at that point. If they say no, go back to the lender that you have the valid AIP with.

kingstreet

betmunch wrote: »

If you have a valid AIP you dont need to do another until you are ready to do an application though so just leave well alone until you have agreed a price and try with your chosen lender at that point. If they say no, go back to the lender that you have the valid AIP with.

+1 for what 'munchmeister said.

One for establishing your borrowing power at the outset and another for your application for the best deal you can find.

Horizon81

So when you say it's one of a number of factors that influences credit score, how much weight does it carry. Could it be possible that even if you have, say, 3 MIPs, (which looks bad) then if you have no other bad marks (late payments, CCJs etc) then you could still be ok?

kingstreet

Absolutely. All we can suggest is a potential borrower does everything they can to minimise any possible down-points and maximises any up-points.

There is no hard and fast rule. Just a bit of common sense.

ACG

Each lender has their own criteria...just like each builder you get out would have their own price depending on the work.

As betmunch said, there is no hard and fast rule. 2-3 is usually the most i would go to before thinking it is going to start getting pointless.

Johnmcl7

What worries me is reading through this forum there seems to be plenty of people who get rejected for mortgages despite having good deposits, credit histories etc. I received a mortgage in principle from my own bank (Halifax) which expired back in August 2011 although I was told on here that wasn't really an issue.

I'm not really sure where to go next though, the mortgaqe in principle from the Halifax was far higher than I needed and I've saved up a bit more on my deposit since then which lowers my lending needs again. I'm worried if I make an application that doesn't go through then that is another credit search which means needing at least another one to try again which would seem to leave me scuppered. My bank seemed fine with lending me and while the rate didn't seem quite as good as the ones I'm seeing on comparison sites they seem to have other catches.

I'd like to think I'm a reasonable safe bet as I have no debts (and never have bar a government student loan which is paid off), a reasonable deposit (around 40%) and no dependents although there's a potential issue that I'm a temporary worker although I've been continuously employed in the same role now for nearly six years.

John

SG27

If you got one that's all you need. It just proves to the seller and esate agent that you are credit worthy and can get a mortgage. You don't have to go back to that same lender for your full mortgage application.

We have an AIP with Norwich and peterbourough but now they have pulled their 10 year fix we probably won't be using them for them. But we won't apply for another.

callmechar

I have a few DIPS (4 now) - since Sept. They only last 30 days. I'm worried.

No debts, never had any debts, hubbie had loans and cr cards (all paid off).

Sept 2011 - first decided to buy, 95% LTV so needed a DIP (Skipton)
Oct 2011 - naive first time buyers talked into mortgage deals by EA mortgage adviser (learnt our lesson) (Skipton)
Oct 2011 - credit score dropped - for no reason (panic!!) Did another (Post Office)
Jan 2011 - found a house, offered and did DIP as start of mortgage application but we never progressed with the house

betmunch

stop doing them, your clearly fine! Even if they expire just leave it until you are ready to offer on a house

callmechar

betmunch wrote: »

stop doing them, your clearly fine! Even if they expire just leave it until you are ready to offer on a house

I know, I will!