Mortgage comparison is a sensible option for anyone looking for an affordable mortgage. However, making too many credit applications can have an adverse impact on your credit score, leaving a ‘footprint’. Santander is one lender which has promised to conduct “soft credit checks” to help buyers find mortgages which they would be eligible for, without harming their credit rating.
Santander will be offering the option to have a “soft credit check” to buyers through a broker, and will offer a mortgage in principle for up to 60 days. A full credit check will only be carried out once a formal mortgage application has been made. Santander’s Brad Fordham says:
“With the recent rise in base rates, many will be prompted to shop around for mortgages. Our soft search will enable customers to do this without affecting their rating.”
Soft credit checks are already offered by Lloyds, HSBC and Halifax, while the Yorkshire Building Society have promised to implement this. Prior to applying for credit, borrowers are advised to check their credit record with Equifax, Callcredit and Experian. Credit records can be negatively impacted by missing or late payments.
The government has recently called for credit checks to take into account rental payments made by tenants. According to Experian, it is possible for tenants to improve their credit rating by making rental payments through Credit Ladder, a free service which passes the payment through to the landlord, informing the credit checker that it has done so.
CeMAP qualified mortgage advisors are able to provide advice about all types of mortgage, the lenders and the credit checks which will be undertaken.
