Affect of hard searches?

luis1988

Not sure how much anyone can help, but wondering if any brokers etc. have experience that could provide me some direction.

Currently with a mortgage lender and had a DIP agreed to move to a new house with topped up funds. All was looking fine until went to application when after a hard search they suddenly reduced their offer by 60%.

Couldn't find enough cash to fund the difference so looking at other lenders. Have identified another suitable lender but they do a hard search at DIP so I am a little worried about attempting that and getting another potential decline and having two recent hard searches.

In my mind this would make it even harder to get a mortgage after both of these but wondering if anyone has any experience/advice that could help?

Thanks!

ACG

Its not an exact science. Someone with perfect credit can probably take 2 hits on their credit report and the third be ok - assuming it is with the right lender. There are also none credit scoring lenders out there who wont really care if you have had 100 credit checks carried out. 

Someone with not great credit might need to do their best to get it right first time. 

K_S

@luis1988 I can't comment on your specific case and hopefully you have understood why your porting loan amount was reduced. But generally speaking, unless you are borrowing with a small deposit and/or have other credit issues in the background, I would not expect one or two hard-checks to stop you from getting a mortgage. Again, this will depend on your particular circumstances and requirements.

If you are going direct, I'm a bit surprised to hear of the hard check at DIP stage. I don't know of any direct lender DIPs that are hard-checks, I thought they were all soft-footprint checks.

luis1988

Thanks for the replies so quickly guys...

ACG said:

Its not an exact science. Someone with perfect credit can probably take 2 hits on their credit report and the third be ok - assuming it is with the right lender. There are also none credit scoring lenders out there who wont really care if you have had 100 credit checks carried out. 

Someone with not great credit might need to do their best to get it right first time. 

Yes both our reports are perfect across Equifax & Experian (not checked Trans Union) with no missed payments at all and all lining up with current situation with only one small loan showing and normal car PCP finance. I know scores are meaningless but main ones are showing 999.

K_S said:

@luis1988 I can't comment on your specific case and hopefully you have understood why your porting loan amount was reduced. But generally speaking, unless you are borrowing with a small deposit and/or have other credit issues in the background, I would not expect one or two hard-checks to stop you from getting a mortgage. Again, this will depend on your particular circumstances and requirements.

If you are going direct, I'm a bit surprised to hear of the hard check at DIP stage. I don't know of any direct lender DIPs that are hard-checks, I thought they were all soft-footprint checks.

So from current lenders perspective their feedback was more around the 'risk rating' where they would do 75% LTV but not 85%, understandable if that is their criteria.

As mentioned above, no credit issues, just some credit in the background but after doing affordability calcs we still get to where we need before going to DIPs etc.

Yes I was a little surprised too, it's a relatively small (in comparison) BS and they perform a manual DIP that takes 2/3 days to come back. So I guess if it comes back favourable then in theory it carries more weight than your usual soft credit automatic DIP, or maybe that is just my wishful thinking!

K_S

luis1988 said:

Thanks for the replies so quickly guys...

ACG said:

Its not an exact science. Someone with perfect credit can probably take 2 hits on their credit report and the third be ok - assuming it is with the right lender. There are also none credit scoring lenders out there who wont really care if you have had 100 credit checks carried out. 

Someone with not great credit might need to do their best to get it right first time. 

Yes both our reports are perfect across Equifax & Experian (not checked Trans Union) with no missed payments at all and all lining up with current situation with only one small loan showing and normal car PCP finance. I know scores are meaningless but main ones are showing 999.

K_S said:

@luis1988 I can't comment on your specific case and hopefully you have understood why your porting loan amount was reduced. But generally speaking, unless you are borrowing with a small deposit and/or have other credit issues in the background, I would not expect one or two hard-checks to stop you from getting a mortgage. Again, this will depend on your particular circumstances and requirements.

If you are going direct, I'm a bit surprised to hear of the hard check at DIP stage. I don't know of any direct lender DIPs that are hard-checks, I thought they were all soft-footprint checks.

So from current lenders perspective their feedback was more around the 'risk rating' where they would do 75% LTV but not 85%, understandable if that is their criteria.

As mentioned above, no credit issues, just some credit in the background but after doing affordability calcs we still get to where we need before going to DIPs etc.

Yes I was a little surprised too, it's a relatively small (in comparison) BS and they perform a manual DIP that takes 2/3 days to come back. So I guess if it comes back favourable then in theory it carries more weight than your usual soft credit automatic DIP, or maybe that is just my wishful thinking!

@luis1988 I'm curious, which lender was this for the porting? If they've capped your max LTV at 75%, that usually indicates either a hard criteria (eg: visa status, property type, etc.) or poor lender credit-scoring (unrelated to Experian/Equifax/TransUnion credit score).

Did they not tell you what specifically tripped you up? I would dig into this more as if it has to do with lender credit-scoring then an extra hard-check maybe something you want to avoid.

luis1988

K_S said:

luis1988 said:

Thanks for the replies so quickly guys...

ACG said:

Its not an exact science. Someone with perfect credit can probably take 2 hits on their credit report and the third be ok - assuming it is with the right lender. There are also none credit scoring lenders out there who wont really care if you have had 100 credit checks carried out. 

Someone with not great credit might need to do their best to get it right first time. 

Yes both our reports are perfect across Equifax & Experian (not checked Trans Union) with no missed payments at all and all lining up with current situation with only one small loan showing and normal car PCP finance. I know scores are meaningless but main ones are showing 999.

K_S said:

@luis1988 I can't comment on your specific case and hopefully you have understood why your porting loan amount was reduced. But generally speaking, unless you are borrowing with a small deposit and/or have other credit issues in the background, I would not expect one or two hard-checks to stop you from getting a mortgage. Again, this will depend on your particular circumstances and requirements.

If you are going direct, I'm a bit surprised to hear of the hard check at DIP stage. I don't know of any direct lender DIPs that are hard-checks, I thought they were all soft-footprint checks.

So from current lenders perspective their feedback was more around the 'risk rating' where they would do 75% LTV but not 85%, understandable if that is their criteria.

As mentioned above, no credit issues, just some credit in the background but after doing affordability calcs we still get to where we need before going to DIPs etc.

Yes I was a little surprised too, it's a relatively small (in comparison) BS and they perform a manual DIP that takes 2/3 days to come back. So I guess if it comes back favourable then in theory it carries more weight than your usual soft credit automatic DIP, or maybe that is just my wishful thinking!

@luis1988 I'm curious, which lender was this for the porting? If they've capped your max LTV at 75%, that usually indicates either a hard criteria (eg: visa status, property type, etc.) or poor lender credit-scoring (unrelated to Experian/Equifax/TransUnion credit score).

Did they not tell you what specifically tripped you up? I would dig into this more as if it has to do with lender credit-scoring then an extra hard-check maybe something you want to avoid.

Santander, and they wasn't the most helpful with their reply to be honest. Never an issue in the past so I can't figure out what it would be at all. Purchasing a new build which I guess changes it a little? 

I did check my reports after and realised the figures on the reports were slightly different to what I gave them (e.g. Cc balance was showing but I had already paid it off). Would that have an impact?

simon_or

I can see why one may go direct for the porting buy why wouldn't you just use a broker now that you are looking at the wider market?

They'll be able to speak to the underwriter and get a clear idea without having to do aips and applications with hard credit checks.

luis1988

simon_or said:

I can see why one may go direct for the porting buy why wouldn't you just use a broker now that you are looking at the wider market?

They'll be able to speak to the underwriter and get a clear idea without having to do aips and applications with hard credit checks.

Yes I am going through a broker now but I assume this is a BS they don't use as often as other main lenders. So I would have thought a DIP is required either way?

K_S

luis1988 said:

K_S said:

luis1988 said:

Thanks for the replies so quickly guys...

ACG said:

Its not an exact science. Someone with perfect credit can probably take 2 hits on their credit report and the third be ok - assuming it is with the right lender. There are also none credit scoring lenders out there who wont really care if you have had 100 credit checks carried out. 

Someone with not great credit might need to do their best to get it right first time. 

Yes both our reports are perfect across Equifax & Experian (not checked Trans Union) with no missed payments at all and all lining up with current situation with only one small loan showing and normal car PCP finance. I know scores are meaningless but main ones are showing 999.

K_S said:

@luis1988 I can't comment on your specific case and hopefully you have understood why your porting loan amount was reduced. But generally speaking, unless you are borrowing with a small deposit and/or have other credit issues in the background, I would not expect one or two hard-checks to stop you from getting a mortgage. Again, this will depend on your particular circumstances and requirements.

If you are going direct, I'm a bit surprised to hear of the hard check at DIP stage. I don't know of any direct lender DIPs that are hard-checks, I thought they were all soft-footprint checks.

So from current lenders perspective their feedback was more around the 'risk rating' where they would do 75% LTV but not 85%, understandable if that is their criteria.

As mentioned above, no credit issues, just some credit in the background but after doing affordability calcs we still get to where we need before going to DIPs etc.

Yes I was a little surprised too, it's a relatively small (in comparison) BS and they perform a manual DIP that takes 2/3 days to come back. So I guess if it comes back favourable then in theory it carries more weight than your usual soft credit automatic DIP, or maybe that is just my wishful thinking!

@luis1988 I'm curious, which lender was this for the porting? If they've capped your max LTV at 75%, that usually indicates either a hard criteria (eg: visa status, property type, etc.) or poor lender credit-scoring (unrelated to Experian/Equifax/TransUnion credit score).

Did they not tell you what specifically tripped you up? I would dig into this more as if it has to do with lender credit-scoring then an extra hard-check maybe something you want to avoid.

Santander, and they wasn't the most helpful with their reply to be honest. Never an issue in the past so I can't figure out what it would be at all. Purchasing a new build which I guess changes it a little? 

I did check my reports after and realised the figures on the reports were slightly different to what I gave them (e.g. Cc balance was showing but I had already paid it off). Would that have an impact?

@luis1988 While it may impact the max borrowing slightly, I wouldn't expect the cc issue to cap your LTV at 75%. Santander new builds are capped at 85% for houses and 80% for flats. Afaik, Santander doesn't have an issue with porting from non new-build to new-build.

The only other thing that I can think of is that one of the applicants is self-employed and you applied prior to June when Santander was capping S/E income at 75% LTV. But even then, that was strictly applied only for new business, they were happy to allow existing customers porting to go over 75% LTV.

luis1988

K_S said:

luis1988 said:

K_S said:

luis1988 said:

Thanks for the replies so quickly guys...

ACG said:

Its not an exact science. Someone with perfect credit can probably take 2 hits on their credit report and the third be ok - assuming it is with the right lender. There are also none credit scoring lenders out there who wont really care if you have had 100 credit checks carried out. 

Someone with not great credit might need to do their best to get it right first time. 

Yes both our reports are perfect across Equifax & Experian (not checked Trans Union) with no missed payments at all and all lining up with current situation with only one small loan showing and normal car PCP finance. I know scores are meaningless but main ones are showing 999.

K_S said:

@luis1988 I can't comment on your specific case and hopefully you have understood why your porting loan amount was reduced. But generally speaking, unless you are borrowing with a small deposit and/or have other credit issues in the background, I would not expect one or two hard-checks to stop you from getting a mortgage. Again, this will depend on your particular circumstances and requirements.

If you are going direct, I'm a bit surprised to hear of the hard check at DIP stage. I don't know of any direct lender DIPs that are hard-checks, I thought they were all soft-footprint checks.

So from current lenders perspective their feedback was more around the 'risk rating' where they would do 75% LTV but not 85%, understandable if that is their criteria.

As mentioned above, no credit issues, just some credit in the background but after doing affordability calcs we still get to where we need before going to DIPs etc.

Yes I was a little surprised too, it's a relatively small (in comparison) BS and they perform a manual DIP that takes 2/3 days to come back. So I guess if it comes back favourable then in theory it carries more weight than your usual soft credit automatic DIP, or maybe that is just my wishful thinking!

@luis1988 I'm curious, which lender was this for the porting? If they've capped your max LTV at 75%, that usually indicates either a hard criteria (eg: visa status, property type, etc.) or poor lender credit-scoring (unrelated to Experian/Equifax/TransUnion credit score).

Did they not tell you what specifically tripped you up? I would dig into this more as if it has to do with lender credit-scoring then an extra hard-check maybe something you want to avoid.

Santander, and they wasn't the most helpful with their reply to be honest. Never an issue in the past so I can't figure out what it would be at all. Purchasing a new build which I guess changes it a little? 

I did check my reports after and realised the figures on the reports were slightly different to what I gave them (e.g. Cc balance was showing but I had already paid it off). Would that have an impact?

@luis1988 While it may impact the max borrowing slightly, I wouldn't expect the cc issue to cap your LTV at 75%. Santander new builds are capped at 85% for houses and 80% for flats. Afaik, Santander doesn't have an issue with porting from non new-build to new-build.

The only other thing that I can think of is that one of the applicants is self-employed and you applied prior to June when Santander was capping S/E income at 75% LTV. But even then, that was strictly applied only for new business, they were happy to allow existing customers porting to go over 75% LTV.

Hmm nope both fully employed, as 'standard' as it comes really.

The only other thing I can think of is we sold my partners car which was on PCP last week and can see it has now dropped off her credit report. I obviously mentioned this to Santander at application (earlier this week) but wondering if it would have an affect during hard search that they didn't mention? For context, the monthly payments were over £400 so wouldn't fully align with the figures I provided them?

simon_or

luis1988 said:

simon_or said:

I can see why one may go direct for the porting buy why wouldn't you just use a broker now that you are looking at the wider market?

They'll be able to speak to the underwriter and get a clear idea without having to do aips and applications with hard credit checks.

Yes I am going through a broker now but I assume this is a BS they don't use as often as other main lenders. So I would have thought a DIP is required either way?

A broker doesn't need to do a DIP to confirm criteria, especially with smaller lenders who are more forthcoming than perhaps a Santander or a Halifax.

However (as I've understood during my adverse days), the bank's credit scoring is an entirely different kettle of fish, for which you often need to do a DIP.

But from what you have said, notwithstanding the Santander issue, it sounds like you should be good to go with any lender.