First Direct Mortgage and alternative from L & C

3577

Hiya

I'm having a first time buyer panic and need some advice please. I have been found a mortgage by L and c ( Coventry 90% at 5.6 fixed for 5 years with 199 booking and 299 arrangement) I am due to proceed with this mortgage application tomorrow. However, yesterday, whilst searching the net, I came across cheaper deals and decided to phone First Direct as they offered a 90% LTV at 4.99% with no fees. Whilst on the phone with HSBC, they did a credit check to open an account with them (which came back fine) and said they will send me the account details and I will have to complete a form, then they will give the agreement in principle following that and the mortgage application.

Since then, I have read some horror stories about First Direct affordability criteria and as we have a dependant and pay childcare , I am not sure whether they will agree the mortgage. My question is, should i just go ahead with the first time buyer mortgage L and C have found or wait and see if FD will agree application. Is the credit check going to adversely affect the application with Coventry BS if I decide not to go ahead with it or they refuse me.

Dave_Ham

Just this additional credit check will not pose a significant issue.

Both products are ok and I assume potentially within budget.

I would ask First Direct whether you "fit" their affordability but if you are part of a quick moving chain (if there is such a thing) then I would imagine Coventry via L&C should be quicker...

Good luck

Gentoo365

Personally I would try First Direct initially. They will assess affordability on the phone.

Remember that most of the internet stories will come from people that were declined, as they are asking for advice. Nobody will go on the internet an write a story about being accepted.

EDIT - the credit check should not make a difference as it is for a mortgage. It is the build up of applications for credit cards and loans that cause a problem.

marathonic

Gentoo365 wrote: »

EDIT - the credit check should not make a difference as it is for a mortgage. It is the build up of applications for credit cards and loans that cause a problem.

Does the credit report list that the check was done for a mortgage application or just the name of the institution? Other banks may not know what the check was done for.

jonnyenglish

When I applied for a mortgage, then decided not to proceed with it, the credit check on my file contained the institution's name, that it was for a mortgage application and the mortgage amount requested.