Multiple mortgage applications in a short period of time

JamHey

I'm a first time buyer and I am attempting to purchase a new build property on my own using the help-to-buy equity loan. Through a broker (Who works for the estate agents selling the property), I consented and signed for a mortgage application, which was eventually approved. The broker also put through the application for the equity loan which was unfortunately declined due to the mortgage being more than 4.5 times my basic salary (Something that the broker should have been aware of). Because of this, one of my parents offered to 'gift' (lend) me some money in order to up the deposit. I then advised the broker that I would be willing to lay down a larger deposit and requested to see if a mortgage could be found for a shorter term than the previous application. I was advised that they would look in to the mortgage options and get back to me the following day. The next day I had a very brief conversation with the broker regarding a proposed mortgage. I was advised who the proposed lender was, how much the monthly repayments were and was told it was for the shortest possible term he could find for me. I was told a 'gifting form' needed to be signed by my parent in regards to the money I had borrowed from them and this had been emailed to me. I checked my emails to see I had received an email from the lender earlier on that day to state that mortgage application had been received (something I had neither consented to, nor signed for). As it is the weekend I have been unable to get any further details about the specifics of the mortgage but from my own research of the lender I believe there may potentially be better deals out there for me. I am now willing to lay down a deposit of up to 25% on top of the 20% equity loan - a total LTV of 55% - so I don't believe I would be short of options. Once I have reviewed the newest application, and if I am not happy with it, I will be considering making a formal complaint about the service that I have received from the broker. If that is the case I really would prefer to seek assistance from elsewhere.

My question is, as there has now been two applications within the last 5 weeks (the first being approved and the second not yet confirmed) would my chances of being accepted for a third mortgage application be affected due to the amount of applications in a short period of time?

Ideally I would like to purchase this property and if my chances of being accepted for another mortgage have been damaged significantly by the two previous applications then I am caught in a catch 22 and may need to continue with the current application. Any advice would be much appreciated.

DottieDam

Can you see either of the searches on your credit file?

I know they all seem to work different but ours didn't do a credit search until after receiving paperwork from us (ID etc) so your second application might not have done anything yet and it seems like your first application might have been declined prior to hard search.

kingstreet

Has anyone actually completed the HTB Affordability calculator?

Surely, making sure that works is equally important as the mortgage?

middleclassbutpoor

Sounds like you have gone to your broker with one situation, they haven't spotted you not meeting the HTB criteria (which is a slight concern) - You have agreed to proceed with an application.

When it has been pointed out you have gone back to the broker saying, I can now put more down and they have gone to apply for a further mortgage using your new circumstances.

Only you and the broker truly know what was agreed but to me, it doesn't seem unreasonable for the broker to work on the assumption that you still want the house and a mortgage to buy it.

You have done some more research and think you have found a better deal (which may or may not be the case) and you have now changed your circumstances again by saying you can bring more money to the table which really doesn't need HTB any more by the sounds of it.

I think you need to understand and realise that, your broker isn't a mind reader, you have a responsibility to communicate what options you have on the table before applying for credit and that just because there may be better rates out there, it may not be the right lender for you - i.e. their lending criteria may not fit or the broker may feel that their documentation standards may be difficult for you to meet or that the customer service means you are going to be waiting for 3 months to get an offer etc.

Multiple credit checks will impact but some are only soft searches so it may not. You would need to specify lenders where a broker/another poster may be able to confirm type of search done.

If you feel you can do this yourself, I suggest you disengage the broker and save them wasting more time. If you want to keep the broker - make your mind up with what you want to do in terms of deposits.