Avoiding Credit File Searches - Best approach?

Sarah_London · 14 January 2019 at 5:49AM

Hello All!

I wasn't sure whether this should be in the mortgage section or the house buying section - I hope this is ok.

Short version: What is the best way to secure a mortgage, without making a lot of searches on my credit file?

Long winded version: I am currently looking for a property as a first time buyer, and I am wondering what the best way is to get the best mortgage deal possible. I bank with Nationwide, and I am able to use their online calculator as a guide to what I can borrow. I believe they do offer quite good rates, and I also see they are now offering 95% mortgages, which would definitely help. However, I am also curious about the benefits of using a mortgage broker. From doing research online, it appears that they have access to products that one cannot find through the usual online searches, which tend to be 'high street' lenders.

My concern is to do with creating searches on my credit file, and thus damaging my chances of getting credit - at least in the short term. If I take the next step (an agreement in principle with Nationwide), this will definitely create a search on my file. Then, what if I want to try out a broker? This would be another search. What if I get the AIP from Nationwide, and then the property falls through...I think the AIP is only valid for 90 days - so then a new credit check would be done.

I realise that all of this might involve 2-3 searches, which is probably not the end of the world. But on moving into a new home, I am likely to need furniture, carpets etc. I would like the option of paying for these things on credit, and do not want to damage my score.

Thanks a lot for any advice - I really appreciate it.

BoGoF · 14 January 2019 at 7:25AM

A broker will know from your personal situation who best to apply to for your circumstances.

Even if you got a mortgage on first application your chances of immediate further credit will be reduced.

Sarah_London · 14 January 2019 at 10:00AM

Thanks for the reply.

BoGoF wrote: »

A broker will know from your personal situation who best to apply to for your circumstances.

Ok, so I will probably go down this road instead. I will do some more research on brokers, so that I don't get ripped off!

BoGoF wrote: »

Even if you got a mortgage on first application your chances of immediate further credit will be reduced.

Yes, I know. That's why I don't want multiple searches if I can help it.

[Deleted User] · 14 January 2019 at 10:03AM

Sarah_London wrote: »

Yes, I know. That's why I don't want multiple searches if I can help it.

It's not so much the searches, which are to be expected when applying for a mortgage, but the new address and borrowing.

Sarah_London · 14 January 2019 at 10:18AM

Ouch! I hadn't thought of that! Isn't this a common problem for people buying a property? I mean there will be a lot of expenses - especially moving from a furnished place to an unfurnished place.

BoGoF · 14 January 2019 at 11:06AM

So you have made no provision for new stuff?

What about solicitors fees, stamp duty (if appropriate) etc etc.

[Deleted User] · 14 January 2019 at 11:11AM

Sarah_London wrote: »

Ouch! I hadn't thought of that! Isn't this a common problem for people buying a property? I mean there will be a lot of expenses - especially moving from a furnished place to an unfurnished place.

Yes it is.

But if you haven't put contingency aside, this is where Freecycle, ebay and that sort of stuff come in extremely handy.

Sarah_London · 14 January 2019 at 12:02PM

Maybe I would be better off making any credit applications at my previous address, just before I leave? Plus, if I want to buy 2-3 expensive items (2-3 applications), will it help if I do them all on the same day? What I mean to ask is...does the credit file get updated immediately, or does it take a few days/weeks for searches to appear?

engineer_amy · 14 January 2019 at 3:58PM

Sarah_London wrote: »

Maybe I would be better off making any credit applications at my previous address, just before I leave? Plus, if I want to buy 2-3 expensive items (2-3 applications), will it help if I do them all on the same day? What I mean to ask is...does the credit file get updated immediately, or does it take a few days/weeks for searches to appear?

I think the general rule of thumb is to avoid any applications for new credit between mortgage application and completion. it would be awful if your mortgage was refused due to a new application for a DFS sofa!
Updates to your credit file can take anywhere from same day to 6-8 weeks. it all depends when the lender sends their data to the CRA and how smooth their processes are for updating.

I would make sure your mortgage was sorted first and you are near enough in the house before worrying about borrowing more. you can manage with patio furniture in your living room for the first couple weeks.

Sarah_London · 14 January 2019 at 5:35PM

BoGoF wrote: »

So you have made no provision for new stuff?

What about solicitors fees, stamp duty (if appropriate) etc etc.

I have/am making provision for that. So, out of the money I have, I need to divide this amongst deposit/fees/furniture. If there will be no facility to borrow after moving in, then I will spend less on my deposit from the beginning. If I can protect my borrowing options in advance, then I can afford to spend more on the deposit. The fees will be somewhat similar regardless of the property I choose, but deciding how much of my capital to put down as a deposit, and how much to hang onto for furnishings....I find this quite difficult.

Avoiding Credit File Searches - Best approach?

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free