is it safe to do several mortgagein principal applications in regards credit score

freeflyer

Hi all, may partner has poor credit score and we need a MIP fairly quickly. We tried the halifax yesterday online and was refused based on credit score Are there any problems in regards applying for one or two more with different lenders? Will this affect any credit score or rating?

withaspritz

If by Mortgage In Principle you mean Agreement In Principle (on a particular property) then yes most will hard search you leaving a mark on your file visible to other lenders, and it looks bad.

If by Mortgage In Principle you mean go through the affordability and calculator to "See what you could borrow" (not attached to a particular house) as some brokers (e.g. Habito) call it, then no this will be purely a soft search and leave no impact on your file

MovingForwards

Yes, some are hard search, others are soft searches. Too many looks bad.

Your credit score / rating is not used or seen by mortgage lenders, it's the credit history they see and use when assessing applications.

Speak with a good whole of market mortgage broker as they will place you with the most appropriate lender. If you do not know any there are several who post on MSE, you can approach them, they cannot approach you first.

csgohan4

if they are refusing outright, it's likely either affordability or your credit history. I would certainly engaged a competent broker who can look into this. But get a copy of your credit reports for free and look at them 

freeflyer

Thanks all. Yes, it was an agreement in principal.
My personal score and history is good. My partner on the other hand has poor history and poor current credit score. The AIP yesterday was with halifax and it simply said the credit score didnt meet the borrowing requirements (the amount shouldn't be a problem). The plan was to try someone else this evening as we need an AIP pretty much immediatley.. But, from what you are all saying, that may not be a good idea to apply for others until we speak to a broker. We do plan to clear her credit card balances etc this week, but are not sure if this will help anything.

gm12

There is also an eligibility tool (in Experian maybe?) that gives you likelihood of acceptance. I’m sure it won’t be totally accurate but might give an indicator of a lender to try? Although a broker probably best option.

freeflyer

Just spoke to a broker.. he's suggesting using a packager?

ACG

If the broker is suggesting a packager, this means they are not that experienced in what you need and it will cost you for the pleasure. Packagers are usually a massive PITA - although as a broker they can help you find a lender/product if you are struggling. 

Having debt is not a problem providing it is affordable and paid on time and paying it off tomorrow wont make any difference on your DIP/MIP because it wont be reflected in your credit report immediately. 

I would suggest a different broker personally. 

amnblog

Like the one above would be a smart move

freeflyer

Thanks all. Have since spoken to two other brokers, and one said flat outright that a packager was suggested as the as the broker wasnt able to do the job himself. So, the packager and that broker are out of the equation. Thanks for the advice so far