mortgage and credit check

hagler

Hi guys, does anyone know how many credit checks a bank makes on your file when you apply for a mortgage as i have been told that the more checks that are made on your file gives you a bad credit rating.

For example if i applied for a mortgage would the bank just make the one credit check and then make a judgement and send out a mortgage in principal or refusal or would they make numerous credit checks.

Also does anyone know under the data protection act what personal information are the credit reference agencies allowed to disclose and what they are not allowed to disclose.

Melissa177

They should only do one. However, when I initially applied for a mortgage, and was accepted, my credit file wasn't checked until right at the very end.

I have an Experian Gold Watch account (60 pounds a year, but I think it's worth it - it gives me peace of mind, and I can monitor my account for ID fraud).

hagler

They should only do one. However, when I initially applied for a mortgage, and was accepted, my credit file wasn't checked until right at the very end.

That seems pretty sneaky, i mean you would rather they check at the begining and decline you straight away then near the end when you think its going to go through. I think ill also give the experian a visit as well, its seems to be free for 30 days.

Melissa177

Yes, I too thought it was a bit odd.

Interestingly, HSBC have started doing a "pre-check" when you apply for a mortgage. They do a check which doesn't show up on your credit file (not sure how this works, but they do it) which will tell you in advance if they will lend.

Always ask anyone lender you apply for whether they will be doing credit checks, how many, and when - they should tell you.

hagler

Melissa177 wrote: »

Yes, I too thought it was a bit odd.

Interestingly, HSBC have started doing a "pre-check" when you apply for a mortgage. They do a check which doesn't show up on your credit file (not sure how this works, but they do it) which will tell you in advance if they will lend.

Always ask anyone lender you apply for whether they will be doing credit checks, how many, and when - they should tell you.

Thanks for the advice, will try to find out before i apply.