Mortgages and credit checks

deanparkr

Hi,

I am looking a FTB looking at mortgages. I initially started looking at borrowing £150k and got an AIP from both Halifax and Nationwide.

However, now I want to look at borrowing £165k. However I have been advised that getting AIP's with a credit check would harm my credit score. Ho Hum.

Just wondered what the best way forward is in this case? Presumably the only way I can find out whether they will lend is via a credit check. Just wondered how people generally approach this issue?

I cant use the online calculators as they seem to suggest I can only borrow £140k, which is £10k less than what Halifax and Nationwide have already agreed in principle to!

The numbers I am aiming for is a £165k loan on a £25k deposit but I'm not sure if thats do-able!

Thanks

ACG

We dont know your income or expenditure.

Speak to a broker? Halifax only do a soft credit check anyway so it shouldnt cause too much damage.

deanparkr

ACG wrote: »

We dont know your income or expenditure.

Speak to a broker? Halifax only do a soft credit check anyway so it shouldnt cause too much damage.

Ah I remember the Halifax did use the term soft credit check, I suppose these have less of an impact / shorter expiry time?

ACG

Less impact as it isnt a proper credit search, its fairly limited in what it checks. Its not really very useful, but at the same time if you fill it in correctly it should give you an indication on whether or not you pass affordability.

My general rule is 4x income - 4.5x at a push assuming you have no credit commitments.

kingstreet

When you do a DIP with Nationwide, it tells the broker the maximum amount which can be borrowed, but only shows the amount requested, on the certificate.

If you are within the three month validity period, you can alter it to a higher amount and no further search is required.