Credit Searches Preventing Mortgage Competition?

The_Negotiator

I wondered whether other people had shared a similar concern.

Given that a credit search on your credit history reflects badly for future searches, do you think this reduces competition?

I know that when I was getting my mortgage offer I was put off from making a second application for what I consdered to be a better deal in case I shot myself in the foot with too many searches in a short space of time. Equally, I expect that my broker went for a "safe" mortgage that he thought I could get, rather than the "best" mortgage which no doubt would have included a risk of rejection.

Perhaps I have oversimplified the process but it does strike me as challenging to ensure you get the best deal.

Simon_gloster

Once you have an offer from a lender there is nothing stopping you getting more.

It will all depend on your score at that time and nobody is in a position to tell you whether or not you should shop around.

Personally, i'd not think twice about having 2 or 3 searches done for a mortgage.......no more though. Again that is me not you.

kingstreet

The_Negotiator wrote: »

I expect that my broker went for a "safe" mortgage that he thought I could get, rather than the "best" mortgage which no doubt would have included a risk of rejection

I would always go for the best deal I can find, even if there is a risk of rejection. When we create our recommendation, we're expected to recommend the best deal we can and provide justification for why that's the best deal. We also have to justify why another deal wasn't more suitable if the rate was better.

"Not sure if the borrower would pass credit score" isn't a good enough justification in my opinion.

If you have to find another deal because the borrower is rejected for the best one, that's a different matter.

pdej4

I certainly felt that way with our current mortgage application. I wanted to consider an HSBC deal that had a lower rate and zero fees so I thought I would have little to lose except for the credit search situation. Knowing though that we had both bought 'new' used cars on credit, my wife had are cent consolidation loan and I a zero percent credit card as well as our application for the mortgage, I was too scared to go for a second app in case it also affected our current one which hadn't gone to offer yet.