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14 June 2006
A large number of mortgage intermediaries are unaware of which type of footprint will be left by a lender on a client's credit file, a new poll shows.
The poll from the Association of Mortgage Intermediaries (AMI) revealed that 43 per cent of intermediaries thought that lenders did not make it clear whether a 'soft' or 'hard' footprint would be left on a client's credit file when obtaining an agreement-in-principle (AIP) or decision-in-principle (DIP) from a lender's website.
While 83 per cent of respondents said that the way they most often obtained AIPs and DIPs was from a lender's website, only 13 per cent said that information on footprints was made clear "some of the time" and only five per cent said "always".
"The issue of credit footprints left by lenders' credit searches continues to frustrate mortgage intermediaries," said associate director of AMI, Rob Griffiths.
"Many are in the dark over whether a 'soft' or 'hard' footprint will be left following a request for an AIP/DIP.
"With the improvements in lenders' technology and the move to affordability-based lending, brokers must be provided with clear information on what footprint will be left and at what stage of the process."
If intermediaries are requesting multiple DIPs and leaving 'hard' footprints with each search, it could have a damaging affect on a client's ability to obtain future credit, he continued.
If you have been refused credit or are affected by debt, order your credit file now and find out what lenders see.
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