How bad are hard checks on credit rating

murphster

Just wondering if anyone knows how detrimental hard credit checks are to a credit file. Last month I applied for a purchase mortgage and buy to let re-mortgage, both NatWest. Purchase approved and I have the offer. Buy to let was undervalued, so I couldn't continue (too much of a short fall). I tried another lender, who did a hard check but was turned down on affordability, and now have three hard checks.

I pulled out of the purchase.

Then I get a call from the estate agency selling the house, do I want to try their in house mortgage broker? OK I think can't lose anything. I've spoken to him and he has run though some options, mainly a lender he thinks will value the buy to let higher.

I'm willing to give this a go, thinking I'll be no worse off if it doesn't work I'm back to my original plan (save hard for a year or so to make up the difference).

But will I, will this application be less likely to be approved because of the three checks I've just had? or if it values the same as before and I can't continue, have I ruined my chances of applying next year?

Also, does anyone have any knowledge of BM solutions? are they generous with their valuations?

Thrugelmir

With 2 companies declining your application. This suggests that the figures aren't stacking up. Not just the property valuation but the rental income may well be a factor too. What basis are you valuing the property on? Perhaps it's overly optimistic. As it's a BTL surveyors may well value it less than on a residential transaction basis under instruction from the lender.

murphster

Thanks, the value was based on estate agents value for sale, I did think it was a bit optimistic and could have afforded a bit of a drop, just not that much. Don't think rental income will have been a problem as the ARLA quote was over three the mortgage cost. NatWest didn't decline completely, just wouldn't lend as much as I wanted / needed, the broker said they would have approved a lower mortgage. Barclays declined on my income, they said I couldn't afford it if it wasn't rented, I didn't even get as far as survey, although not sure how that all registers on my credit file.

I would like to try one more time with this BM solutions (suggested by the new broker). I am prepared for them to value at the lower level, if they do I'm no worse off, like I said, I can save hard for the next year or so. I just don't want to destroy my credit file and chances of getting a mortgage next year.