Car insurance due, just applied for mortgage - credit checks?

sparks11

Hopefully this is a simple question - our mortgage application went in yesterday, so obviously I cannot apply for any credit whilst we're waiting for the decision - but my car insurance is due for renewal soon. I can see from a comparison site search I did a few weeks ago that some companies have done a soft search on me. Does this change to a full credit search when I apply? Or am I safe just to go ahead and sort it?

squeeks

Just pay for the year - it is cheaper and you don't have to worry about credit checks.

sparks11

squeeks wrote: »

Just pay for the year - it is cheaper and you don't have to worry about credit checks.

OK, I do always pay for the year anyway. Thank you

betmunch

Which lender did you go with in the end?


Defo pay the car insurance for the year at this sensitive stage

sparks11

betmunch wrote: »

Which lender did you go with in the end?


Defo pay the car insurance for the year at this sensitive stage

Nationwide. I bank with them already but hadn't even considered speaking to them before now (only recently opened my account with them), got the DiP with no issues and a 'hard' search has appeared on mine and husband's credit report. If it's a no, it's a no, I'm sure we'll survive renting a bit longer! All they've asked for is payslips, husband's SA302s and proof of deposit. Valuation has been paid for but not instructed as far as I know. So now it's a waiting game.

I'm hoping we find out before insurance is due so it won't be an issue. But yes, I'll definitely pay the whole year up front.

EDIT: Just got a text saying the valuation has been arranged, fingers crossed this is a good sign!

betmunch

Brilliant, I thought they would be the lender you would end up with.


Much more confidence in their AIP, and better rates than Halifax.


Well done, shouldn't take to long if you have supplied everything.

sparks11

betmunch wrote: »

Brilliant, I thought they would be the lender you would end up with.

Oh really? You have no idea how comforting that is!

It was the rates that won it really, MA said she had confidence it would go through with Halifax, but they were a lot more expensive. Personally I feel comforted knowing they've done a 'proper' check of our files. We think the valuation should be OK as we paid a bit under the going price on the street. The house does need work though, which we are planning on getting done straight away, MA mentioned something about possible retentions? It's all a tad baffling to me - think I'll stick with my day job and leave this financial stuff to the experts!

betmunch

sparks11 wrote: »

Oh really? You have no idea how comforting that is!

It was the rates that won it really, MA said she had confidence it would go through with Halifax, but they were a lot more expensive. Personally I feel comforted knowing they've done a 'proper' check of our files. We think the valuation should be OK as we paid a bit under the going price on the street. The house does need work though, which we are planning on getting done straight away, MA mentioned something about possible retentions? It's all a tad baffling to me - think I'll stick with my day job and leave this financial stuff to the experts!

When people put up their details I am sure all the mortgage advisors make a few assumptions about the whole case, add in the problem that's being posted about, and think which lender they would have gone with.
As there are assumptions about it due to not having done the full fact find, we cant say lender names in case its taken as advice and an assumption is wrong.
My assumption was that you case was 100% fine aside from what you posted about, that led me to believe you would go with one of 3 lenders, of those Nationwide generally have the best rates.


With regards to the retentions, this would be if the surveyor felt that something needed correcting in the house before its worth its full value. I wouldn't worry about it until a surveyor brings it up.

mrsammyp

Hi,

Sorry if I read this wrong but it looks like you are actually asking whether the soft searches done on a comparison site would effect your mortgage and not talking about arranging credit to pay for the insurance?

If so, no they would remain as soft searches and would not effect your mortgage application (unless you took out an instalment plan). Some insurance companies now use light credit scoring to evaluate you as a risk in addition the normal questions.

sparks11

mrsammyp wrote: »

Hi,

Sorry if I read this wrong but it looks like you are actually asking whether the soft searches done on a comparison site would effect your mortgage and not talking about arranging credit to pay for the insurance?

If so, no they would remain as soft searches and would not effect your mortgage application (unless you took out an instalment plan). Some insurance companies now use light credit scoring to evaluate you as a risk in addition the normal questions.

Yeah that is what I was asking. I had in the back of mind that insurance companies could assess risk by credit scoring clients. Thanks for your reply good to know I'm safe to insure my car haha!

Thanks again betmunch for all your patient responses, fully understand why you can't name lenders on here before the application, but it is good to know Nationwide came up on your radar with the information I had given. Yep, no other problems than the one I mentioned. I do worry that if they look at our bank statements they'll question the non-essential outgoings, but we have also been saving well over £1K per month recently as well as paying rent, so should be OK as repayments are about £850 (I know, stop over thinking things!)