Mortgage expert required please! Is it bad if I cancel a recently approved mortgage and take out another with a different company? Would a recent credit check affect this?

[ilikeyoursleeves]

About a month ago we applied and were approved for a remortgage to do a house extension. We had cold feet about it, so I called up to see if 'in theory' we could cancel the mortgage if we wanted to. At that point it hadn't all gone through yet (ie we didn't have the extra money yet) but they mistakenly recorded that we wanted to cancel it. I only found this out today. They said we can still go ahead with it, no probs.

However, I don't think the deal was explained to us very well and for various reasons I think we'd be better taking the mortgage elsewhere. They had done a credit score on us and we were fine but my worry is that we might not get approved by another lender as they will see we had only just had our credit rating checked and I understand that this is bad. Could this affect our likelihood of getting a loan from elsewhere?

Have you received an offer of loan?

If not, then technically you haven't been approved.

Are you based in Scotland or England? The reason I'm asking is that there are different laws in regards to property sales.

Is the loan from a high street bank or a lending company?

In regards to credit searches, this is quite common. If it does flag up on a credit report, an underwriter would probably apply common sense to this. Or you could speak to the mortgage company and advise them of this.

As long as there hasn't been several credit checks done in a short period of time, it shouldn't affect your ability to get a loan somewhere else.

Sorry for all the questions

Yes we would have had an offer sent to us but after my phonecall to see 'if' we could cancel it, it was cancelled! So we have been approved and the woman at the bank did a credit check in front of us and we were fine to get the mortgage.

We are in Scotland and the loan is from a high street bank.

I called L&C mortgage brokers earlier (got theie name off moneysavingexpert) and they said we should be fine to take out a new mortgage, people do that quite a lot esp if they have been approved for a mortgage then the sale of the house falls through. They did a search and found one of equivalent terms but for £100 less a month!

Will def be switching now and thank F that I 'cancelled' the original one!

L&C are very good. Have dealt with them quite a few times through work.