Doing 2 DIPS in a short space of time

James2626

Hello, 
My mortgage broker has said because I applied for 2 DIPS from 2 different places within a day of each other that I must now wait 3 months before doing so again because it looks bad to lenders? 

Would anyone be able to confirm if that is true? 

Many thanks

K_S

James2626 said:

Hello, 
My mortgage broker has said because I applied for 2 DIPS from 2 different places within a day of each other that I must now wait 3 months before doing so again because it looks bad to lenders? 

Would anyone be able to confirm if that is true? 

Many thanks

@james2626 Which lenders are we taking about? Hard-check or soft-check?

ACG

No, that is 90% rubbish. There is some truth to doing multiple credit checks can be bad for your credit scoring and I suppose it does look a bit odd, but there is not a cut off point at 2. We have clients who went direct, failed, we then did a DIP somewhere and it failed and then we got it through on the second attempt - there is 3 within a week. 

But why have you got 2 DIPs and why do you need a third? If you have a DIP agreed and valid for the next 30 days give or take, you dont need another. Use it to view properties and then when you find somewhere choose who to apply to once your offer is agreed. You do not need 2-3 DIPs, that is just a pointless exercise. 

James2626

Sorry I should have been more clear 
1 DIP was rejected - 1 was accepted but I never accepted it
I did check my credit score once or twice through different sources but the score is very good 
They say I need to hold off for a while as I look suspicious and untrustworthy

moxxey

James2626 said:

Hello, 
My mortgage broker has said because I applied for 2 DIPS from 2 different places within a day of each other that I must now wait 3 months before doing so again because it looks bad to lenders? 

Would anyone be able to confirm if that is true? 

Many thanks

I did about 4 DIPs in a short period (2 months) and it's not affected my credit scoring. DIPs only perform a soft check, so have fairly little impact.

K_S

moxxey said:

James2626 said:

Hello, 
My mortgage broker has said because I applied for 2 DIPS from 2 different places within a day of each other that I must now wait 3 months before doing so again because it looks bad to lenders? 

Would anyone be able to confirm if that is true? 

Many thanks

I did about 4 DIPs in a short period (2 months) and it's not affected my credit scoring. DIPs only perform a soft check, so have fairly little impact.

@moxxey Just want to point out here that not all DIPs are soft-checks. Some prominent ones that are hard-checks (at least when done at the broker's end) are Virgin, NatWest, Platform, TMW, Coventry, etc. 

K_S

James2626 said:

Sorry I should have been more clear 
1 DIP was rejected - 1 was accepted but I never accepted it
I did check my credit score once or twice through different sources but the score is very good 
They say I need to hold off for a while as I look suspicious and untrustworthy

@james2626 The client doing multiple DIPs and (unknowingly) entering incorrect information can sometimes be an issue if a broker then goes ahead with an application with the same lender. But there's no reason to hold off for three months just because you've done two DIPs. Depends on the whole circumstances.

debtfreeian

K_S said:

moxxey said:

James2626 said:

Hello, 
My mortgage broker has said because I applied for 2 DIPS from 2 different places within a day of each other that I must now wait 3 months before doing so again because it looks bad to lenders? 

Would anyone be able to confirm if that is true? 

Many thanks

I did about 4 DIPs in a short period (2 months) and it's not affected my credit scoring. DIPs only perform a soft check, so have fairly little impact.

@moxxey Just want to point out here that not all DIPs are soft-checks. Some prominent ones that are hard-checks (at least when done at the broker's end) are Virgin, NatWest, Platform, TMW, Coventry, etc. 

Virgin direct is a soft check.
https://uk.virginmoney.com/mortgages/mortgage-hd/step1/
Halifax is, I'm pretty sure NatWest is.

K_S

debtfreeian said:

K_S said:

moxxey said:

James2626 said:

Hello, 
My mortgage broker has said because I applied for 2 DIPS from 2 different places within a day of each other that I must now wait 3 months before doing so again because it looks bad to lenders? 

Would anyone be able to confirm if that is true? 

Many thanks

I did about 4 DIPs in a short period (2 months) and it's not affected my credit scoring. DIPs only perform a soft check, so have fairly little impact.

@moxxey Just want to point out here that not all DIPs are soft-checks. Some prominent ones that are hard-checks (at least when done at the broker's end) are Virgin, NatWest, Platform, TMW, Coventry, etc. 

Virgin direct is a soft check.
https://uk.virginmoney.com/mortgages/mortgage-hd/step1/
Halifax is, I'm pretty sure NatWest is.

@debtfreeian I did say "when done at the broker's end". It can be different direct though they're not always comparable.

For example the Barclays retail website offers a “soft search” AIP but is in effect watered down because only some credit data is verified. I've had customers get a pass on their own and fail a DIP when done at my end (which is a hard-check for Barclays) and when I talked to the BDM that's the reason they gave.

moxxey

K_S said:

moxxey said:

James2626 said:

Hello, 
My mortgage broker has said because I applied for 2 DIPS from 2 different places within a day of each other that I must now wait 3 months before doing so again because it looks bad to lenders? 

Would anyone be able to confirm if that is true? 

Many thanks

I did about 4 DIPs in a short period (2 months) and it's not affected my credit scoring. DIPs only perform a soft check, so have fairly little impact.

@moxxey Just want to point out here that not all DIPs are soft-checks. Some prominent ones that are hard-checks (at least when done at the broker's end) are Virgin, NatWest, Platform, TMW, Coventry, etc. 

My NatWest DIP wasn't a hard check.

ACG

James2626 said:

Sorry I should have been more clear 
1 DIP was rejected - 1 was accepted but I never accepted it
I did check my credit score once or twice through different sources but the score is very good 
They say I need to hold off for a while as I look suspicious and untrustworthy

You can not really reject a DIP. If you submit a DIP you either get it or you dont. If you no longer wish to proceed that is fine, but you have a DIP for the purposes of viewing property, why do you need anymore? 

Find a proeprty and then narrow down the products, you might not find a property in the next 30 days, that then means you need yet another DIP. Sorry if you take this the wrong way but you are making it far more complicated than it needs to be and creating more work then necessary and potentially causing problems down the line. 

You have a DIP, even if you have no intention of proceeding with that lender. 

Actually - having typed all of that, am I right in assuming the DIP came back lower than expected/hoped? If so, that is a great reason as to why you need to stop doing DIPs. You should be checking that affordability fits before doing DIPs.