Posted on 3 April 2012 by Kevin
I've applied for a mortgage through a broker, but one of the building societies is offering a better rate with no fee. My broker is adament the building societies mortgage will be refused to me on affordability, but the building societies mortgage adviser thinks it might be OK but says the only way to know for sure is to submit an application, which he wants to do. Can I do this or will it cause problems by having two applications with two different lenders at the same time which could result in both applications being refused?
Will this cause you problems? It is very possible that the existing lender will be advised of your new application and it is likely that their Fraud Department will contact the new lender to let them know you have already made an application with them. As the Building Society already knows you have applied elsewhere this shouldn't cause an issue with them, but you run the risk of having the original application declined and then not passing the Building Society's lending criteria, leaving you with no mortgage offer and a fraud warning on your credit file.
Before you go ahead, have you checked the Building Society's website? These normally have an affordability calculator on there and you can check before submitting an application that you will meet their criteria. I would also expect the mortgage adviser to be able to do this for you prior to submitting an application and I don't think saying it is ok is good enough.
Your mortgage broker will have had a wide choice of lenders and products, using his knowledge of the market to recommend the most suitable for you. The branch adviser does not have this requirement and only need recommend the most suitable mortgage from those they offer. Personally I think your mortgage broker is more likely to come up with the right solution.
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