A 2nd mortgage as backup plan?

Roselondon_2

If we know the lender we applied with is very picky and fear it would ruin our deal for the dreamed house, does it make sense to apply with a 2nd lender just in case the first one fall through?

I know there would be extra valuation fee or set up fee. But is there any other downside other than paying a bit extra?

Will it affect the assessment by the first lender if they find out in the credit report the application with a different bank??

Wh05apk

No there should be minimal impact, with regards product fee, ensure it is added to the mortgage to avoid losing it (although some lenders - Nat west/Woolwich charge withdrawal fees, so avoid them)

Roselondon_2

Thanks, Wh05apk! Good tips for adding the fees into the mortgage...

whitecjw

We started a second application on Monday with Santander, since Northern Rock have had our first application for 8 weeks. Santander have actually told us already the offer is in the post! Valuation was only carried out today!
I would highly recommend submitting a second application. We did let Santander in on the fact we were getting nowhere with NR though. There has been no update on our application in 2 weeks!

Roselondon_2

whitecjw, we might do it after the 1st lender returns all the originals documents to us.

I would have a bit more peace of mind with a backup plan set up...

bigadaj

Wouldn't the second application credit check take note of the first and the assumption would then be that you were turned down first time? Probably not terrible for one additional application but something to consider.

Wh05apk

bigadaj wrote: »

Wouldn't the second application credit check take note of the first and the assumption would then be that you were turned down first time? Probably not terrible for one additional application but something to consider.

Shouldn't be a problem, most people now seem to get 2/3 checks done, normally the first with their bank, then realise they have been fleeced!, then possibly another if rates improve.