Mortgage in principle credit searches

Morn

Morning folks,

Now whilst I appreciate that some people will consider me somewhat naive, I just wanted to make sure that people were 100% aware that in principle applications can trigger a credit search on you file.

My mortgage broker did not mention this would occur for an in principle application and I only noticed this by accident when I checked my Equifax report.

Whilst in my case this is the first new application/search for any credit listed for a long time, if people get trigger happy online then they could be messing themselves up.

@The mortgage advisors of the forum. Is it a case that any application in principle will trigger a full credit search? I am led to believe there different search types that can be done so wonder if the above is common practice.

Hope that helps someone and also thanks for any comment on the above question.

Cheers

hoponhiggo

Im not an advisor, just a first time buyer, but ive been scanning through these forums alot lately.

I beleive there are 'soft' seraches and 'hard' searches. Soft searches appear on your report but do not affect your score, but only provide an indication of your likelyhood to be accepted after a 'hard' search.

A hard search will affect your score.

I think thats right

FTBnewbie_3

Hi,

My experience was as follows…..

1. When obtaining my AIP a credit search was done. This showed on the creditfile as a search by the lender. I was advised a credit search was being done bymy IFA.

2. When submitting the full application a second search was done this showedon the credit file as a 1st mortgage application and triggered an email alert fromExperian to me. Once again I was advised another credit check was being done bymy IFA.

Looking at my credit report from Experian the AIP search knocked 15 point of my credit report. The score went from 997 to 982. The full application has not yet changed my credit report. I will advise if it does.

The elapsed time between these two searches was 5 days.

kingstreet

An AIP using a soft search is as much use as the proverbial chocolate fireguard. Plenty of threads on here about those with a Halifax mortgage promise being declined at full application. Data at old previous addresses doesn't show up on the soft search.

Before undertaking an AIP, a broker should tell you that a search will be carried out, be visible to lenders searching you in future for upto twelve months.

Try to have only one carried out before submitting a full application.

In my experience, if having an AIP, a full application within a few days, based on the same information with no increase in borrowing, should not require another search. It does vary from lender to lender though.

Scottishrob79

kingstreet wrote: »

if having an AIP, a full application within a few days, based on the same information with no increase in borrowing, should not require another search. It does vary from lender to lender though.

I just gone through full application with Nationwide. I also am paying for the facility with Experian where when a change happens to your report, they email you an alert.

My broker said they would do a soft search for the MIP, which pinged an alert. When the full application went in, they didn't search again

kingstreet

AFAIk Nationwide AIP is a hard search, not a soft search.

It's a lot more reliable as a result.

Is the search recorded as "first mortgage" or something similar?

mjb1974

Scottishrob79 wrote: »

I just gone through full application with Nationwide. I also am paying for the facility with Experian where when a change happens to your report, they email you an alert.

My broker said they would do a soft search for the MIP, which pinged an alert. When the full application went in, they didn't search again

I had a full search for my DIP with Nationwide which showed on my experian credit file in December. This one was recorded a s a 1st Mortgage check.

Full application is due to go in the next couple of weeks (its a new build with completion due end July).

Everything is as was on the DIP that was done. Can I expect another Credit check?

kingstreet

Not sure.

There will be a "use by" date on the AIP and once it goes stale, a new search is needed.

The last one I have on file says it's valid for 90 days.

Scottishrob79

kingstreet wrote: »

AFAIk Nationwide AIP is a hard search, not a soft search.

It's a lot more reliable as a result.

Is the search recorded as "first mortgage" or something similar?

Actually, that would make sense, my fault!

Thrugelmir

mjb1974 wrote: »

Everything is as was on the DIP that was done. Can I expect another Credit check?

Yes, as time has elapsed. Circumstances change.

droiderm

I have tried to look at this in the past , but does anyone actually know what information can be seen on a soft search ?