Making a second mortgage application in a short space of time

mrgrumpy99

I recently applied for a mortgage, but the sale fell through before the application was accepted (the lender had done a hard credit search) .

As the mortgage product has been removed the lender won't transfer the rate it to a new property and the new rates are very uncompetitive. This means I will need to apply for a mortgage with a new lender on an alternative property. My concern is how the lender will view another mortgage search on my credit file in such a short space of time. Will it affect my ability to get approval on the new mortgage? For reference my credit score is 970 & Excellent (on Experien Credit Expert). 

MovingForwards

Your scores and ratings are not seen or used by lenders, it's the credit history they see.

There's three main credit reference agencies, not all financial institutions / utility companies etc report to all. Some report to all, some report to 2, olsome report to 1. Make sure you check all your CRA reports.

I wouldn't worry about another application. Are you using a broker to make sure you're placed with the right lender for your circumstances?

mrgrumpy99

@MovingForwards Yes I am using a broker of sorts (L&C) who selected the second mortgage application based a few factors. However, I don't believe they made the mortgage recommendation based on credit search history. For reference, the proposed lender is Natwest. 

Beeboo23

I had the same situation as you. Second mortgage was accepted without issue. 

[Deleted User]

mrgrumpy99 said:

@MovingForwards Yes I am using a broker of sorts (L&C) who selected the second mortgage application based a few factors. However, I don't believe they made the mortgage recommendation based on credit search history. For reference, the proposed lender is Natwest. 

If yo have a less than ideal credit history, or a complicated application, L&C are the wrong choice. 

Consider using a decent broker who will place your application correctly based on your circumstances. NatWest is also not a good choice for anything other than a very simple case.

Kiwistrawb1990

Deleted_User said:

mrgrumpy99 said:

@MovingForwards Yes I am using a broker of sorts (L&C) who selected the second mortgage application based a few factors. However, I don't believe they made the mortgage recommendation based on credit search history. For reference, the proposed lender is Natwest. 

If yo have a less than ideal credit history, or a complicated application, L&C are the wrong choice. 

Consider using a decent broker who will place your application correctly based on your circumstances. NatWest is also not a good choice for anything other than a very simple case.

Not true. I was accepted for a mortgage with Natwest during covid with a default and heavy payday loan useage. Certainly not simple. I worked my backside off and improved my finances significantly in 3 months but still wasn't a simple case.

[Deleted User]

Kiwistrawb1990 said:

Deleted_User said:

mrgrumpy99 said:

@MovingForwards Yes I am using a broker of sorts (L&C) who selected the second mortgage application based a few factors. However, I don't believe they made the mortgage recommendation based on credit search history. For reference, the proposed lender is Natwest. 

If yo have a less than ideal credit history, or a complicated application, L&C are the wrong choice. 

Consider using a decent broker who will place your application correctly based on your circumstances. NatWest is also not a good choice for anything other than a very simple case.

Not true. 

Very true.

Well done on getting accepted, but it still doesn't make Natwest a good choice for a poor quality applicant 

Malkytheheed

Lenders expect to see a good few mortgage application around the same time. It's not detrimental in the way several credit cards search in quick sucession are. It's expected. 

phillw

I'm not sure I'd say it was expected to have a couple of applications.
But it's secured on a property, so it's not like if they see a bunch of credit card searches and don't know whether you actually have those cards or not