The lender said the launch will enable brokers to shop around for their clients and get a lending decision without affecting their credit record. Only when borrowers proceed to a full mortgage application will the record show a full search has taken place.
Accord’s adoption of ‘soft’ footprints was sparked by the firm’s recent entry into the non-conforming market, according to the lender’s commercial director, Mark Underhill. He said: “It became clear to us from speaking to brokers that this was an essential requirement for operating in the non-conforming market. A ‘hard’ footprint will only show up if a mortgage is subsequently applied for with us.
“For those with an adverse credit record, it is perhaps even more important to hunt around for the best mortgage deal as rates are not so favorable, and each time a client applies to see if they are eligible, a ‘hard’ footprint is left to show that check took place.”
Underhill explained that for a lender, half-a-dozen checks on a borrower’s record could indicate a potential customer may be trying to gain credit with a few organisations at the same time. “You could do the credit check again in two weeks and find someone has signed up to several credit deals at once,” he said.
Jock Cassidy, managing director of Ashley Law, commented: “I would certainly say that with the non-conforming market, the potential of mortgage fraud is much greater. If you have had heavy footprint checks done on your credit record and have too many rejections, a mortgage lender will become far more discerning than they would usually be. I know of a lender in the past who preferred not to lend to property developers. There could be nothing wrong with their credit history, but they would still be rejected.”
