Applying for one mortgage with two different lenders

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Lotak
Lotak Posts: 96 Forumite
in Mortgages & endowments
Hi there,

I'm applying for a remortgage and doing it myself.
Is it common practice to apply for more than one mortgage, and then, upon receiving multiple mortgage offers, to pick the one that is most affordable?

I ask, because I am in the process of applying for a mortgage with two different lenders. I was doing this because I need to remortgage within 6 weeks and want to cover my bases in the event one of the lenders rejects me for whatever reason.

The overall cost for both mortgages is broadly similar.
Current Debt (excluding mortgage) - £7,020
Reducing £450/ month.

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    What are you going to do if neither offer?
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    This is a dangerous practice.

    Lenders subscribe to the National Hunter system which records credit applications and compares data. If there is any accidental difference, you may find you are declined by both lenders as a potential fraud risk.

    In addition, multiple credit searches aren't helpful.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • jaelato1
    jaelato1 Posts: 139 Forumite
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    Just a simple question......Why?
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    Why?

    Why what?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • butterflybook
    butterflybook Posts: 125 Forumite
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    Not a great idea as others have mentioned above
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • jaelato1
    jaelato1 Posts: 139 Forumite
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    kingstreet wrote: »
    Why?

    Why what?

    Why is OP applying for mortgage with two lenders?
  • Lotak
    Lotak Posts: 96 Forumite
    edited 21 August 2018 at 12:33PM
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    Appreciate the responses.

    1) If neither offer, it's not the end of the world, but my life will be considerably more expensive based on my existing mortgage. I guess the worst case is that neither lender offer because they are aware of the other lender and multiple searches prevents me from getting a remortgage for the near future.
    2) My logic is to cover my bases in the event one doesn't offer, then I'm still in a semi-advanced stage on the other one. I am not suggesting that it is good logic.
    3) I'm supplying all of the information, so I'm being entirely consistent with what I provide them / answers to any questions that are asked.
    4) I appreciate multiple (it'll be two in this case) credit searches aren't helpful and that is something I've considered, but decided was worth to do.

    To add, the reason why I applied to both is because they were time-sensitive offers from the lenders, and I couldn't wait because the offer was set to expire. That and I got concerned about the rise in base rate.

    One is in a far more advanced stage than the other (already gone to the conveyancer, valuation [not a full one] is done, underwriting is almost done), so I may wait until I (hopefully) receive a mortgage offer and then just let the other one lapse (as it's still at the AIP stage and has a two month window). Given they've not informed me about a valuation or appointed a conveyancer to act on the remortgage, I am probably safe to assume that this hasn't been done so there shouldn't be any real consequence other than the credit check.
    Current Debt (excluding mortgage) - £7,020
    Reducing £450/ month.
  • kingstreet
    kingstreet Posts: 38,767 Forumite
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    jaelato1 wrote: »
    Why is OP applying for mortgage with two lenders?
    Sorry, thought you were asking me why...
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • csgohan4
    csgohan4 Posts: 10,587 Forumite
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    The multiple credit searches are not going to help your case. Your hedging your bets, but it may have consequences, hope it works out well for you though
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • Lotak
    Lotak Posts: 96 Forumite
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    Got my mortgage from Lloyds. Let the Santander one lapse.
    Should be completing soon! Just need to wait for funds to transfer and all will be good in the world.
    Thankfully nothing of consequence happened.
    Current Debt (excluding mortgage) - £7,020
    Reducing £450/ month.
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