Looking for the Yeti

May 14, 2018

 

I was brought up with stories of "The Bogeyman" and "The Yeti" - that fearsome unknown creature that staulked the climbers of Nepal. Stories of footprints in the snow, larger than a man's footprint and tales of dodgy sightings and blurred shapes caught on 35mm. So whenever I hear someone talk about footprints my mind is always on high alert. And if you are a borrower you should also be on high alert when talk of footprints are mentioned by your broker.

 

These footprints are not of the manmade kind but rather the electronic type. Too many foorprints and this will reduce your credit score and ultimately your ability to secure finance. The lenders will see you as a potential bad risk as they will simply think that you have been refused borrowing by another lender and follow suit to refuse you lending. 

 

There are some lenders out there that will only leave a soft footprint that does not have a detrimental effect on your credit score. Halifax and Santander are two of the main lenders that just leave a soft imprint. I also hear that Nationwide Building Society are thinking of adopting the soft footprint model which is great news for borrowers.

 

So make sure and ask your broker about footprints and how each lender treats clients at Decision in Principle stage. No point running a DIP with a lender that will leave a hard footprint if you have no chance of a successful outcome. A good broker will ask about your circumstances and match those with the criteria of a lender not just pick Halifax because it's easy!

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