Rules around mortgage refusal.

[Acorn22]

I've been researching for the past few days and have found nothing about this. Is there a law/rule with banks that if you are refused a mortgage amount you can only reapply to banks a few other times before it impacts your credit rating. I can remember hearing that on the radio a few years ago but haven't heard anything recently. Does anyone know anything about this?

 

[RedOnion]

No. You're credit rating is impacted when you miss repayments. Not when you apply for loans.

Every time a credit check us performed, it leaves a 'footprint' on your record. This just says "Bank A checked your records". The next bank that checks your record can see this.

 

[Acorn22]

Thanks RedOnion.

 

[cousin_borat]

Not necessarily true, simply having banks checking CCR can cause issues. For example, if you're a company director a supplier (commonly in UK or Norway) may perform credit check on director(s) as part of theie due diligence. There are instances of companies having credit terms reduced as a broker had fired mortgage application to several banks.