Need Mortgage / Credit rating advice

[jamesbrown]

they only really used it as an identity check

In that case, they should make a soft footprint, which wouldn't be visible to other lenders (I'm not saying they do, just that a credit check isn't logical, only an identity check/admin review).

[Martin@AS Financial]

Two weeks ago I browsed the forums here and found that the only contractor friendly high street bank is Halifax. I used their online tool and got an agreement in principle for a mortgage with a 10% deposit. I then scheduled an appointment with a credit consultant in one of their branches. The branch was very busy and he could only see me today.

Today I gave the consultant the same details I used previously online and Halifax system came with an agreement in principle with minimum 15% deposit. This is my first mortgage application and I made a lot of mistakes. I didn't mention to the consultant I already had an agreement. In the last two weeks I changed my home broadband and my business mobile to BT, who did two credit checks. I guess the 3 credit checks in the last 2 weeks are the reason for the 15% deposit.

My problem is I found a house I really like for sale. The owner is moving to Australia and he'll accept the best offer he gets by 18th of August. Once I get paid in early August I'll have enough to make the 10% deposit and pay £4000 in different fees. There's no way I'll have 15% in time.

Do you think 5 weeks will be enough for the credit check to "cool down" and revert to 10%?

I strongly advise that the first thing you do is download your credit report and find out why your score has dropped so sharply. 9 times out of 10 you will be able to see where the problem lies straight away:

Free Credit Check, Credit Report and Credit Score from Experian UK

You are 100% correct in that too many scores have an adverse effect and this could well be the reason.

More often than not though, it is because a bank struggles to find your information. Ask the adviser to make sure that your address is entered line for line as per your experian report as this makes a real difference.

Lastly, did you declare all your outstanding credit as of the day that you applied. Bear in mind that credit agencies take a while to update so if you paid off your card a few days ago, it may not yet have been recorded.

The Halifax system is pretty intelligent and if it is not declared, the balance will be taken into account when calculating affordability. This may well have led to the reduced loan size.

[kevpuk]

Try Noddle for a simple/free/limited startpoint......CheckMyFile is useful, too, but will cost you.....although there might be TCB/QuidCo - actually, there probably is on Experian/Equifax 'trial' too = free money, huzzah!