Credit checks (for broadband etc) before mortgage application?

maisonette

I'm hopefully going to be buying a house in the near future as a first time buyer... it could be tomorrow or it could be in 9 months, just depends when the right property comes on the market.

I recently took out a new contract hire lease vehicle (2 weeks ago) so a credit check will have been performed for this. My broadband contract has come to an end and I was going to switch to EE as they're doing a good deal through MSE with £120 Amazon voucher, the offer ends tomorrow.

It just occured to me that a credit check will be performed for this, now I don't have any credit issues but this would mean two credit checks in quick succession - is this likely to have a negative effect on any mortgage application, which potentially could be tomorrow? Would you hold off switching broadband if you were in my shoes? It's quite a big saving to switch - nearly £25 a month over the term.

dgtazzman

Probably won't have nearly as much effect as some people believe it will. Lenders look at the big picture, a few credit searches like those won't change the picture that much (well, the car lease would have an impact on affordability, but as long as it's all declared when applying, no problem.

Are you even sure EE does a credit check for broadband only?

Anyway, I don't see it doing much harm, unless you go applying for loans like mad, which would give a picture of financial problems and turn potential lenders off...

Also, searches will pretty much ignored after 6 months.

maisonette

dgtazzman wrote: »

Probably won't have nearly as much effect as some people believe it will. Lenders look at the big picture, a few credit searches like those won't change the picture that much (well, the car lease would have an impact on affordability, but as long as it's all declared when applying, no problem.

Are you even sure EE does a credit check for broadband only?

Anyway, I don't see it doing much harm, unless you go applying for loans like mad, which would give a picture of financial problems and turn potential lenders off...

Also, searches will pretty much ignored after 6 months.

Thanks, I checked their T&C's and EE definitely do credit check for broadband/landline. I've not had any other credit checks in the last 12 months so it would just be the lease car and the broadband credit search-wise - I know the effect on the credit file diminishes over time I was just concerned that 3 checks in quick succession (if I found a house tomorrow and applioed for a mortgage) might be an issue.