Do I risk it…? 4th credit check

HatsofftoYou

We had an offer accepted on a house beginning of September. Initial mortgage was principality but then switched to another provider at a better rate & the provider we actually wanted. The rates then dropped beginning of December hence 3rd rate swap and hard search.

the rate has now dropped again by .40% and I really want to swap to the new lower rate.

issue is we are 4 weeks away from completion and for each rate swap they do a hard credit search and it goes to the underwriters, they also cancel your current product. 

Is it a risk, if we don’t get approved we’re left without a mortgage and a possible damaged credit score. Would 4 searches be off putting for the underwriters? Has anyone had experience of this 

secla

what does 0.4% over your fixed period equate to in £ ?
Only you can say whether that risk is worth it to you, personally i wouldnt but everyones different

HatsofftoYou

secla said:

what does 0.4% over your fixed period equate to in £ ?
Only you can say whether that risk is worth it to you, personally i wouldnt but everyones different

The 0.4% equates to 1k over the two year fix. Yes I’m definitely on the fence on whether it’s actually worth it

kingstreet

So are we on second lender and looking for third product from that lender?

HatsofftoYou

kingstreet said:

So are we on second lender and looking for third product from that lender?

Yes it’s a second lender, we were approved by the first but really wanted the lender we are with now. Both myself and my husband have a 999 credit score, loaning about 3 x joint income and putting 45% deposit down. The banks themselves keep dropping the rates so surely they expect people to keep reapplying? I just don’t know how risky it is having not been in this position before.

jrawle

HatsofftoYou said:

Yes it’s a second lender, we were approved by the first but really wanted the lender we are with now. Both myself and my husband have a 999 credit score, loaning about 3 x joint income and putting 45% deposit down. The banks themselves keep dropping the rates so surely they expect people to keep reapplying? I just don’t know how risky it is having not been in this position before.

Standard MSE tip: ignore the "credit score". These are pretty meaningless.

In my view, borrowing 3x income with 45% deposit, you are in a strong position, and there is no reason they will reject your mortgage application. If you were borrowing 4.5x with a 10% deposit, it might be different.

Also, as I said above, they don't see a credit score, they see you file. If it's the same lender doing another check, they will know that it was them doing the previous one for a product you've now cancelled.

As a disclaimer, obviously, this it just my opinion. I'm not your lender and don't know how they decide applications.

HatsofftoYou

jrawle said:

HatsofftoYou said:

Yes it’s a second lender, we were approved by the first but really wanted the lender we are with now. Both myself and my husband have a 999 credit score, loaning about 3 x joint income and putting 45% deposit down. The banks themselves keep dropping the rates so surely they expect people to keep reapplying? I just don’t know how risky it is having not been in this position before.

Standard MSE tip: ignore the "credit score". These are pretty meaningless.

In my view, borrowing 3x income with 45% deposit, you are in a strong position, and there is no reason they will reject your mortgage application. If you were borrowing 4.5x with a 10% deposit, it might be different.

Also, as I said above, they don't see a credit score, they see you file. If it's the same lender doing another check, they will know that it was them doing the previous one for a product you've now cancelled.

As a disclaimer, obviously, this it just my opinion. I'm not your lender and don't know how they decide applications.

I appreciate your feedback, I do think we are in a strong positions. I think just being so close we are over thinking it as we don’t want to loose the house but essentially there’s no reason we would. Thanks 

chanz4

not worth the hassle

HatsofftoYou

We decided to go ahead, I was reassured that it was just a credit check. We now have a new offer and a better rate. Wasn’t much hassle had the new mortgage offer in 24 hours. 

I think if we weren’t in such a good position it may have been more risky, so each situation will really define whether it’s worth the risk or not