2 Credit Searches for one Mortgage Application!

PBA

They shouldn't really have done a search on you for a DiP. It's exactly that, a decision in principle, which means they should assume your credit file is fine rather than doing a search.

However, you presumably agreed to that search, so they did it, then the underwriter needed a search to approve the mortgage. It boils down to would you rather have one search on your file and a declined mortgage or two searches and an approved mortgage.

Incidentally, you say you work for a broker yet you're going direct for a mortgage?? Your boss is going to shoot you if that's really true...

herbiesjp

Most Dip or AiPs will do a credit search - some will leave a hard foot print and other a soft foot print on your credit file.

It could be argued it is exactly for TCF purposes that the lender is carrying out two credit searches - they want to make sure that the applicant is 100% suitable for the mortgage amount requested, and they fit the lending criteria. If it came to light that they had not carried out sufficient checks or lent money irresponsibly, they that may in itself give rise to a TCF complaint

dunstonh

It could be argued it is exactly for TCF purposes that the lender is carrying out two credit searches

The great thing about TCF is that if you can show a good reason why you do something it can counter teh other. herbies comments are a great example of that.

What is bigger concern. A nothing issue about two credit checks or sensible lending decisions?

john3:16

I thought I should update my progress with this post. It was clear from the previous posts (from IFA's/Mortgage Advisors) that I was wasting my time.

However, in the spirit of this forum, we the consumer keep up the fight - Good news.. After following the advise of MABLE and ajaxgeezer I have successfully managed to get the second credit search removed from my file.
I did this by (as suggested) contacting and complaining to Experian.

Following 2 emails to the Experian team (and about 4 weeks wait) they eventually removed the other search.

Dunstonh: to answer your last question
Better to have NO Credit problems PLUS NO Irrelevant Searches

Cheers
Gerry

Dan_Collins_2

TCF has nothing to do with this. Woolwich have always done this and many lenders will do more than one search to tack fruad. It makes no odds to your file unless you continually seek credit.

I think the first one is a soft search and may actually only show up on your copy and not if another lender looks.

I think your making somehting out of nothing!

john3:16

I didn't use the TCF line in the end. Just complained. And I'm not making a mountain out of a molehill. Both searches were identical and the second was not necessary. It was my right to have it removed.

We shouldn't tolerate unnecessary searches on our credit files IMHO.

Cheers
Gerry

minimike2

This issue is nothing to do with TCF and is not unreasonable.

If you were lending your money, wouldnt you want to be sure that nothing had happened between applicaiton and offer, and even offer and completion?

I sure would...

Dan_Collins_2

john3:16 wrote: »

I didn't use the TCF line in the end. Just complained. And I'm not making a mountain out of a molehill. Both searches were identical and the second was not necessary. It was my right to have it removed.

We shouldn't tolerate unnecessary searches on our credit files IMHO.

Cheers
Gerry

Well one was at AIP stage the other at App stage. I dont see a problem.

However I think the 2nd should be done nearer completion but before contracts are exchange if its a purchase.

NeilQuinn

RBS do two credit searches, I've been told by their manager. Experian at the AIP stage & when the full application arrives, they the do an Equifax search. I do know that you will sometimes see stuff missing from Experian & it shows up on Equifax (and vice-versa)

john3:16

The search was conducted (with Experian) on 11th Feb on the basis that it would speed up our application with the underwriters (according to the Mortgage Advisor at Barclays who took our application - my wife was present I wasn't).

Then on 22nd (I think) it was done again with Experian - same type of search (when they received the paperwork). I personally think the mortgage advisor shouldn't have done the credit search first time around and just let the backoffice staff do it on receipt of the new business/pre offer paperwork - that way there would (perhaps?) had been only one search in the end.

Based on all the comments from the IFAs and Mortgage Advisors here, it was interesting that my complaint led to a successful removal of the search which suggests the Bank couldn't justify it to Experian ??? no?

Cheers,
Gerry