I had a great question in from one of my subscribers which I thought I’d share because I get asked this, and some similar related questions, quite often.
In fact, we’ll also look at some of these other questions in this video as well.
Here’s the question:
I’ve recently read your ebook. Does refinancing your properties effect your credit rating?
Thanks in advance,
I thought it’s be good to get an expert opinion so I thought I’d ask my very good mortgage broker what he thinks, and this was his reply …..
No direct negative impact as the data will show new credit search & new remortgage the following month(s) from the same lender so this in isolation will not have too much of an impact if any.
Issues may crop up if they are applying via multiple lenders for the same property via DIPs/other Brokers submitting DIPs particularly to lenders who undertake a full credit search at DIP stage (most undertake a soft credit search).
If there is a regular repeat pattern of multiple new searches being done by a variety of lenders then yes this could impact score.
So really the problem with credit scores only really occurs when you start making multiple applications.
Not in the sense of applications on multiple properties, but multiple applications on the same property.
It occurs to me that if you take proper advice from a mortgage broker, which you should always do, then none of this should be a problem. As they‘ll know what raises red flags on the system and will help you to avoid that.
Here’s to Successful Property Investing.
(ex) Chartered Surveyor, author and property investor
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to: