2 Mortgage applications over 8 weeks

nekr0mantik

hello
I need some advice and am wondering if anyone here been similar situation.
so applied for mortgage and hard credit search was done to my good credit score. That went fine and then they did valuation however for some reason the valuation got the value 50k lower then asking price and it does not match similar properties sold in the last 6 months in the area. however barclays new rules say if valuation is not over 25% below asking then they wont let appeal.
So my main good option is to change lenders as this does seem very bad and not usual and estate agent and broker says they not seen this low down valuation for a long time. Previous properties were only up to 10k less to 10k more range. 

Anyone know how bad this will be for my credit score if I switch lenders and they do another hard search prior to valuation as to future credit applications people will assume I was rejected a mortgage when in actual fact I could have spent 100k more according to affordability checks according to broker. 
Any advice on impact on credit score and what anyone else switched lenders at this stage?

Thanks

MaryNB

It's not usual to change lenders during the buying process. One hard search won't scupper your chances of a mortgage. 

Your credit score you see on Experian/Equifax/TransUnion doesn't matter. Lenders don't see the score, they only see your report and they do their own internal scoring. They will see the hard searches but the odd one won't be a big issue.

nekr0mantik

MaryNB said:

It's not usual to change lenders during the buying process. One hard search won't scupper your chances of a mortgage. 

Your credit score you see on Experian/Equifax/TransUnion doesn't matter. Lenders don't see the score, they only see your report and they do their own internal scoring. They will see the hard searches but the odd one won't be a big issue.

Would 2 mortgage applications not hurt my chances at getting a credit card for example after 6 months of signing a mortgage? 
As normally multiple applications means you been denied.

MaryNB

Yes if you have many hard checks but two isn't that many. Like I said you're far from the first person to change lender mid process. Even without switching mid way, many people have an additional hard check done for their their DIP. Some banks perform another hard check before releasing the funds for exchange.

I had two in 3 months because after I got my mortgage and moved in, Virgin media did a hard check when I got my broadband contract.

Also after 6 months the impact of a hard search won't be that significant.

nekr0mantik

MaryNB said:

Yes if you have many hard checks but two isn't that many. Like I said you're far from the first person to change lender mid process. Even without switching mid way, many people have an additional hard check done for their their DIP. Some banks perform another hard check before releasing the funds for exchange.

I had two in 3 months because after I got my mortgage and moved in, Virgin media did a hard check when I got my broadband contract.

Also after 6 months the impact of a hard search won't be that significant.

thanks thats good to know
so I guess the risk is that another lender who uses different surveyor may value it at same price or close to it in which case I am in a pickle but if that happens then vendor should have more motivation to drop price. hope it dont happen though! 

ItsComingRome

nekr0mantik said:

MaryNB said:

It's not usual to change lenders during the buying process. One hard search won't scupper your chances of a mortgage. 

Your credit score you see on Experian/Equifax/TransUnion doesn't matter. Lenders don't see the score, they only see your report and they do their own internal scoring. They will see the hard searches but the odd one won't be a big issue.

Would 2 mortgage applications not hurt my chances at getting a credit card for example after 6 months of signing a mortgage? 
As normally multiple applications means you been denied.

No as they're checks for entirely different products.  You're more likely to get trouble from the short time at your new address to be honest.

I took out an Amex immediately after completion, no issues whatsoever and they're one of the pickier lenders.

Thrugelmir

nekr0mantik said:

MaryNB said:

Yes if you have many hard checks but two isn't that many. Like I said you're far from the first person to change lender mid process. Even without switching mid way, many people have an additional hard check done for their their DIP. Some banks perform another hard check before releasing the funds for exchange.

I had two in 3 months because after I got my mortgage and moved in, Virgin media did a hard check when I got my broadband contract.

Also after 6 months the impact of a hard search won't be that significant.

thanks thats good to know
so I guess the risk is that another lender who uses different surveyor may value it at same price or close to it in which case I am in a pickle but if that happens then vendor should have more motivation to drop price. hope it dont happen though! 

Might be the same firm of surveyors. 

nekr0mantik

Thrugelmir said:

nekr0mantik said:

MaryNB said:

Yes if you have many hard checks but two isn't that many. Like I said you're far from the first person to change lender mid process. Even without switching mid way, many people have an additional hard check done for their their DIP. Some banks perform another hard check before releasing the funds for exchange.

I had two in 3 months because after I got my mortgage and moved in, Virgin media did a hard check when I got my broadband contract.

Also after 6 months the impact of a hard search won't be that significant.

thanks thats good to know
so I guess the risk is that another lender who uses different surveyor may value it at same price or close to it in which case I am in a pickle but if that happens then vendor should have more motivation to drop price. hope it dont happen though! 

Might be the same firm of surveyors. 

Barclays used Countrywide and Halifax says E-Serv.
I will ask broker to ensure halifax dont use countrywide