Mortgage application and credit record

4500_Donavan

Hi. I'm looking at moving house. If the mortgage was declined because of an issue with the valuation would it leave a mark on my credit record? Even though the issue was not due to my financial status.  

MyRealNameToo

4500_Donavan said:

Hi. I'm looking at moving house. If the mortgage was declined because of an issue with the valuation would it leave a mark on my credit record? Even though the issue was not due to my financial status.  

A search for the purpose of a credit application will leave a "footprint" to show a search was done. It doesnt state what the outcome of the search was nor any reason for the outcome. 

So it depends on how far your first application got and if they had done a hard search on your credit record. If they have it will be visible, if they hadnt then obviously it won't. A single mortgage application on file isnt going to have any significant impact on the next application unless you have also been making lost of recent applications for loans/credit cards etc and/or you are an absolute edge case on if they should lend or not. 

ACG

Just to echo the above. 
All lenders see is that a credit check was carried out. They do not know the outcome or why you are no longer proceeding. It could be you as the applicant, it could be the property, it could be that the new lender offers better products etc etc. 

Also on a side note, some lenders ask if you have had an application declined. I would personally be answering that as no (but you should check with the lender). The application has not been declined, the property has. If you were to find a new property, presumably the application would be fine? But as mentioned, double check with the lender beforehand. 

Mark_d

4500_Donavan said:

Hi. I'm looking at moving house. If the mortgage was declined because of an issue with the valuation would it leave a mark on my credit record? Even though the issue was not due to my financial status.  

When an application is declined, it does not state this on your credit record.  However it will show that "this bank" did a hard credit search on you but you've had no subsequent account set up with "this bank".  This can be understood s your credit report showing that you've had an application declined.
In the case of a mortgage, I thought the lender does the valuation before the formal mortgage application (with credit check)?  It has been 9 years since I last moved house so I can't remember exactly.

4500_Donavan

Thanks for your comments. If the valuation is completed before the formal mortgage application then that will be fine. I'm with HSBC and will be porting an existing mortgage and adding another but getting any info out of them is proving challenging. 

screech_78

Mark_d said:

4500_Donavan said:

Hi. I'm looking at moving house. If the mortgage was declined because of an issue with the valuation would it leave a mark on my credit record? Even though the issue was not due to my financial status.  

When an application is declined, it does not state this on your credit record.  However it will show that "this bank" did a hard credit search on you but you've had no subsequent account set up with "this bank".  This can be understood s your credit report showing that you've had an application declined.
In the case of a mortgage, I thought the lender does the valuation before the formal mortgage application (with credit check)?  It has been 9 years since I last moved house so I can't remember exactly.

I think it can vary by lender. But we applied for a mortgage at the end of the May and the hard search took place the same day as the application was submitted. Valuation a few days later and then income verification.