Cancelling mortgage application - affect credit rating?

Naydy

My partner and I have AIP from one of the main banks after applying directly and we are just waiting on salary certs to submit to them. However after two family bereavements in close succession and now this horrible situation with Covid 19, I'm strongly feeling I want to pull the plug and apply again in 6/12/18 months when there is less uncertainty. Both our jobs are secure so technically we could go ahead but I'm just scared of finding ourselves in negative equity from the get go. Will cancelling a pending application adversely affect our credit rating? Overall I think ours is good as it stands right now although partner had one missed credit card repayment. Thanks for any insight.

SozBbz

No, not going ahead with a mortgage application does not affect your credit rating. Not paying back money as owed is the only thing that does that.

You may as well apply just to see what you get (and to see if your partners credit history poses a challenge in reality). You're under no obligation to draw down any funds. People don't actually go through with mortgages all the time for lots of reasons.

Full approval requires you to sale agreed with a specific property so you won't go that far, but IMO theres no harm in submitting payslips etc and just extending it until its the right time for your circumstances.

Now, if the arse falls out of the market, the banks will have no obligation renew your approval at the current levels, but i'd be inclined to think that you're better off to be approved and applying for an extension than a new applicant in those circumstances.

Pablo_Flox

Don't bother cancelling it - just let the AIP run out. It is likely for 6 months. Let it run out and apply again whenever you wish to get back house hunting.

Naydy

Thank you both, I appreciate you taking the time to reply, that's very helpful.