Concerned about credit score and new mortgage, better to go with current provider?

kwazzi

I am currently in the process of applying for a new mortgage, having accepted an offer on my house last week.

I am concerned about being accepted for a mortgage for a number of reasons, the main one being that both my husband and I have paid our credit cards a day late in the last year (yes we know how stupid we are). My equifax credit score comes out as 'excellent' but shows yellow marks on the credit agreements section of the full report. My husband's score comes out as 'fair' and also shows the yellow on the credit agreements. I have no idea why the same mistake would affect us differently though.

We are wondering if we would have more chance of having a mortgage agreed by our current provider, where we have reliably paid our existing mortgage for ten years. We have been told by the provider that it is would be a simpler process to get a new mortgage through them, but not why.

Can anyone advise?

kingstreet

I suspect their assertion is not true.

When applying for a new mortgage, whether applying to your current lender, or a new one, you are treated the same as anyone else making a new application.

If you have late/missed payments and your lender just happens to be the strictest of all, you may still be declined, whereas an application to the most lenient lender you have no accounts with may still see you accepted.

IMHO you should start by looking for the best deal, not looking to stay with your existing lender which may not offer you that. Speak to a broker for a view of the market as well as your lender and "direct-only" lenders.