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  • FIRST POST
    • shopaholicno1
    • By shopaholicno1 14th Mar 18, 9:15 AM
    • 129Posts
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    shopaholicno1
    Will this credit search harm mortgage application?
    • #1
    • 14th Mar 18, 9:15 AM
    Will this credit search harm mortgage application? 14th Mar 18 at 9:15 AM
    Back in early February, I thought it was a good idea to apply for a credit card to help build my credit score. At this point, we were waiting until January next year to buy a house, so it was plenty of time for the search to no have so much of an impact on my credit file.

    I applied, but they needed some ID to verify who I was. Around the same time, they house we wanted cake on the market and the inlaws stepped in the lend us the deposit money. I decided not to progress my credit card application, but looking at my file it looks like they did the search anyway!

    I have two credit searches in the par 3 months on my account, the other was in January for our joint current account.

    I'm seeing the broker later hopefully when I drop some paperwork in, but I just wondered if our chances are looking bleak for the mortgage now?
Page 1
    • hazyjo
    • By hazyjo 14th Mar 18, 9:43 AM
    • 10,633 Posts
    • 13,896 Thanks
    hazyjo
    • #2
    • 14th Mar 18, 9:43 AM
    • #2
    • 14th Mar 18, 9:43 AM
    Never a good idea to apply for credit/a credit card just before a mortgage application. Don't know how it will affect your mortgage application - broker will advise.


    Is all the deposit borrowed? That might be your stumbling block if so.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • shopaholicno1
    • By shopaholicno1 14th Mar 18, 9:47 AM
    • 129 Posts
    • 474 Thanks
    shopaholicno1
    • #3
    • 14th Mar 18, 9:47 AM
    • #3
    • 14th Mar 18, 9:47 AM
    Yes, all the deposit will be borrowed from inlaws-is this usually a problem?
    • hazyjo
    • By hazyjo 14th Mar 18, 10:40 AM
    • 10,633 Posts
    • 13,896 Thanks
    hazyjo
    • #4
    • 14th Mar 18, 10:40 AM
    • #4
    • 14th Mar 18, 10:40 AM
    Yes. You're effectively borrowing 100% of the cost - which is like having a 100% mortgage which are no longer offered (as far as I know!).


    Gifted deposit would be a different story.
    2018 wins: Single Malt Whisky; theatre tickets; festival tickets; year of gin(!); shoes
    • ACG
    • By ACG 14th Mar 18, 10:48 AM
    • 17,032 Posts
    • 8,921 Thanks
    ACG
    • #5
    • 14th Mar 18, 10:48 AM
    • #5
    • 14th Mar 18, 10:48 AM
    There is only one lender I know of who will accepted a loaned deposit.
    So you may find your options limited...not necessarily more expensive however.
    I am a Mortgage Adviser
    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.
    • shopaholicno1
    • By shopaholicno1 14th Mar 18, 11:17 AM
    • 129 Posts
    • 474 Thanks
    shopaholicno1
    • #6
    • 14th Mar 18, 11:17 AM
    • #6
    • 14th Mar 18, 11:17 AM
    I'm sure my inlaws would do it as a gift in that case. I'll have to check! Thanks.
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