HSBC Multiple Credit Checks

Ashley1511

Hi All

So I'm new and have been following for a while.
My partner had a DIP with HSBC. (I have credit issues from a few years ago, so it is a sole application)
Anyway, we had an offer accepted for an £80,000 house. We are using LIFT government shared equity scheme, so they are 'giving us' 20,000 and the mortgage is for £60,000.

He passed the credit check at the beginning of the full application, and the application was sent to underwriters.
Today (4th working day of underwriters) they have cancelled the application, with no reason as of yet.

Now affordability wise, we are paying for our wedding, which is May, however we have added a note of when everything will be paid off (Mid April) and a projection of outgoings from then onwards with mortgage payments.
We have just shy of £500 disposable income every month and are currently paying £450 rent, mortgage would be £250. So I personally don't think affordability would be an issue.

I went on, as I was curious, to check and make sure they did a credit search ect on creditexpert, and it appears in the past 1 month, they have done 4 full searches.
The first one, we knew about, as that was the date we put in the full application.

Searched By:
• HSBC BANK PLC on 08/03/2016
• HSBC BANK PLC on 08/03/2016
• HSBC BANK on 07/03/2016
• HSBC BANK on 27/02/2016

Now my partners credit rating has gone down by 250 points ish, yet nothing on his credit file has changed apart from these searches.


Is it normal to complete multiple searches on a mortgage application?


Now we can't even go elsewhere because the credit searches have been so recent and there's been so many. Just 1 or 2 may not have been an issue, but FOUR?! And why 2 in one day?


Hopefully someone will be able to advise if this is normal or not...

Malmo

The points on your credit report are completely irrelevant as this information is not visible to lenders. Lenders apply their own scoring criteria based on the data in your credit history, not the Credit Reference Agency's marketing gimmick of points. Also, if you are subscribed to Experian's CreditExpert, please only use the free trial and do not continue to pay for their monthly product, which you don't need.

The searches themselves are only an issue when multiple searches are performed with multiple lenders over a short timeframe, as that can be inferred by other lenders as desperation. If HSBC have declined, then there is nothing stopping you from working with an independent whole of market broker/adviser to find you the right product.

It is normal to perform more than one search against an applicant's profile.

Are you both financially associated on your reports? If so, then your own history may be impacting your partner's creditworthiness.

Ashley1511

Oh, I understand that, but obviously the searches affect whether or not you get more credit.
We do pay for the monthly service for both of our reports, but only while we are trying to get a mortgage so we can keep an eye on things.

Yes we are finaincially associated, but I have checked mine and there are no HSBC searches on it, both in soft footprints or hard searches.