Applying for a mortgage= Damaged Credit Rating?

jennfercain

Hi

I'm really worried about my mortgage situation. I've had an offer accepted and thought that the mortgage would go fine: I was previously buying another property which I backed out of due to homebuyer survey results, I had a mortgage for this from Nationwide for 128,000. The time between applying for the mortgae and having the survey done and an offer back was less than 10 days.
Once I found the new house I resubmitted the mortgage application asking for an extra 2 grand (£130,000). I had been told by my mortgage adviser that Nationwide would lend me up to £138,000 so I thought it would be fine.
So far they are saying no and that they may not even lend me 128,000, even though they had already gone to a full mortgage offer with that amount 2 weeks earlier!

Before I applied for the Nationwide mortgages I think I was wrongly credit scored twice by Halifax and Bridgefords. They didn't make it clear that it was a full credit score and didn't tell me that it could damage my credit rating.

I want to forget about the Nationwide mortgage and apply for another but I'm worried that I'll have a bad credit rating now and that I'll be refused. Am I right in thinking this?

Please can someone help?

luckyfool

Jennfer,

1. Nationwide are notoriously fickle and their credit scoring is very tough. The fact that they are potentially declining you just now is not a major issue, it certainly does not mean that other lenders will not be willing to help on the high street.

2. The Halifax credit search for an Agreement in Principle or Mortgage Promise as I understand it is a Soft Credit Search which does not leave a footprint that Nationwide would see.

3. The very fact that Nationwide are credit searching you again could be the only reason it failed, they are taking into account the earlier Nationwide search and this could be enough with them to turn a narrow pass into a narrow fail My experiences with Nationwide are generally negative and they are not a flexible lender and are unlikely to budge on this, I would personally take my business elsewhere.

To summarise, unless you have missed payments on any credit recently or had any county court judgements or other credit issues, I really would not worry. Lenders like Accord Mortgages do not even use a credit scoring system so the number of credit searches done is immaterial with them. With others they will be taken into account but should not on their own stop your case from passing.

Hope this helps

jennfercain

That really helpfull, Thank you so much!