REAPPLY TIMESCALE

GeoffJ

I applied to First Direct online (my first time as I usually call).  Went through the process OK and received message the loan was affordable - decision in <2 days.  Then changed my mind as I wanted a longer term.  Spoke to FD who advised cancel first application and reapply with longer term.  They cancelled 1st application (incl referral to underwriter) and said I was clear to reapply which I did after an hour.  On reapplication (online) I was rejected almost immediately without getting to the income/outgoings stage.  Spoke to FD (different person) who explained that the credit referencing rejected my 2nd application as it was regarded as a multiple application (2nd credit referencing) and either I could not afford the 2nd in addition to the 1st or I was hunting for an improved rate.  He called it a "system" rejection.  Seemingly it happens often because even though the first application was cancelled the search remains.  FD could not suggest when would be a good time to reapply (1 week/1 month?).  I want to stay with my bank and not reapply to another only to be rejected (again).   Any suggestions as to my reapplication timescale please?  And next time I'll speak to the bank rather than try online.

CliveOfIndia

The first search was performed when you made your initial application.  That is a true record of the facts and cannot/should not be removed from your record.

It won't have been the CRA that rejected your second application, it would have been FD's own internal algorithms - they saw that one search had already been performed very recently.  This (combined with many other factors) meant that you failed their eligibility assessment.

GeoffJ said:

even though the first application was cancelled the search remains.

This is absolutely correct, and is how it always works.  A search was performed, so stays on your record.  The outcome of the search (whether you were accepted or declined - or chose not to take up the offer) is not recorded.

GeoffJ said:

FD could not suggest when would be a good time to reapply (1 week/1 month?).  I want to stay with my bank and not reapply to another only to be rejected (again).   Any suggestions as to my reapplication timescale please?

This is a hard one to predict.  Each lender will have different criteria, and you won't know what those criteria are.  Best guess - I'd leave it at least a month as a minimum, maybe two to be on the safe side.

GeoffJ said:

And next time I'll speak to the bank rather than try online.

That's unlikely to make any difference.  However you apply, the assessment mechanism is the same - they pull your data from the CRA, run it through their systems and see what the output is.  The don't use different assessment criteria depending on which route you apply through.

The best thing to do is give it a month or so then run an eligibility check - ideally on the lender's own website rather than a generic 3rd-party eligibility checker.  This will give you an indication (though by no means a guarantee) as to your likelihood of being accepted, without performing a hard search.

GeoffJ

Dear Clive of India - thank you for your very helpful advice.  My thoughts/hopes are that I'm not dead in the water but need to be patient.  

Interesting pseudomym - I'm in the middle of a book by William Dalrymple about the East India Company and Clive of India played a very significant part in the growth of the enterprise.  Sadly I need to be more patient that Clive.

Once again, many thanks. Geoff