AIP then multiple rejections?!

Kennywilson77

Two weeks ago I applied for an agreement in principle with HSBC. I spoke to an advisor there about a different purchase and he told me just to keep running applications as the soft credit checks wouldn’t affect me at all. None of these further applications were successful and all declined on lending criteria. No, I will admit I have ran quite a few (12-16) and one with Halifax. All in a short space of time. Is it possible this is affecting things? I was told by the HSBC mortgage line it wouldn’t affect anything at all. 

I still have the AIP which is almost 1/3 more than the amount I am asking for, I’m hoping this one will still be ok and won’t be rejected now. 

Has anyone any knowledge of whether this would affect things? 

[Deleted User]

If they're soft searches, no one will know about them, apart from the lender that ran the search.

If they're hard, then that many will almost certainly be having an impact.

Ebe_Scrooge

Soft searches shouldn't normally affect things, as only you can see them.  But you say you've been making "applications".  An application for credit (rather than just an eligibility check) would normally entail a hard search, which could affect your mortgage application.  The usual advice is not to apply for any other lines of credit in the run-up to a mortgage application.

Kennywilson77

HSBC themselves are now not accepting them and it was their searches. Is it possibly they reject on as many going on ?

Kennywilson77

No it was only the mortgage.
Approx 12-16 on HSBC (based on the advice of the phone advisor - who said just try different term times and purchase prices to see what it comes up with)
1 Halifax

K_S

@Kennywilson77 In theory, there is no problem with running multiple soft-footprint DIPs. In practice, the issue that I have seen arise is from inadvertent data inconsistencies across the many forms that you fill in. Lender systems will flag inconsistencies and if they are material, a future DIP or FMA (Full Mortgage Application) may go on to decline automatically. This isn't an exact science and all this is almost wholly automated.

As an illustration, once you have entered the data into the online form and submitted it, the system will compare the information you have entered to data it currently has access to via third party systems. This will look for anomalies, check against other similar type applications, look for any recent patterns, etc.

I don't know how it works direct. But, as a broker if I had an accept on version 1 of a DIP and later had a decline on version 2 for the same applicant, I would copy the details and rerun version 1 and get a DIP accept before proceeding to a full application. I hope that makes sense.

Kennywilson77

HSBC one is still AIP...