When do I apply for new mortgage?

chris8

Am selling house - on market next week. Might sound like a silly question but I'm not sure how soon to apply for a new mortgage? Currently haven't seen anything I want to buy so might rent if house sells before I see something. However, when do you go to a broker and how long is mortgage offer valid for? Haven't moved for 18years so this is all new. Also not sure of new house value so how much mortgage do I apply for? Or do you just get offer in principal? Sorry to sound so thick but any advice would be brill.

Mrs_Bumble

You can't really apply for a mortgage until you have a property in mind as the mortgage is agreed partly on the basis of whether the property is adequate security for the lender.

You could speak to an independent whole of market mortgage broker to discuss the process and affordability etc. If you have had no credit history problems in the past then I personally wouldn't want an agreement in principle carried out. But have a chat.

herbiesjp

Agreed.

Best to start now - but not applying.

Start by discussing your scenario with a true whole of market adviser - this will give you an idea as to what you could hope to find currently and what it would cost you each month.

Then keep in contact with the adviser, and update on how the search is going. If you see places that you like tell them about the property, and they will be able to give you specific figures on that specific property, which will help you gauge whether or not you want to put offers in or not

chris8

We were refused a further advance in May for debt consolidation, much to the surprise of the lady in the building society who said she was 99% sure we'd get it! She said it was apparently because we'd already consolidated our debts before and they were getting tougher on this - understandable. We then applied to another bank for a remortgage and were refused without explanation. My credit rating was very good and my husbands was only good due to a couple of missed payments months ago on a credit card which he thought he'd put onto direct debit. Do you think this is going to make it difficult for us to get a mortgage or does the passage of a time between applications make it better for us?

happybroker

Sounds like you may be high loan to value to me.

Get your credit report and take it to quality whole of market broker just in case you are going to have problems. Best you know at the outset what the situation is rather than disappoint yourself and others further down the line and waste money on HIPS etc if you have no chance.

I hope it all works out.

chris8

LTV is 58% without adding debts, and 70% with debts. Do you think this will still be a problem? Will do what you say though as very sound advice. Thanks.

happybroker

A couple of late payments on cards doesn't sound like sufficient reason to me for a decline, see how you go with a professional.

herbiesjp

Have you got up to date copies of both credit files?

Get these and discuss with a true whole of market adviser.

Was the decline due to some other reason maybe i.e. outside of income multiples or some other criteria?

Mrs_Bumble

chris8 wrote: »

We were refused a further advance in May for debt consolidation, much to the surprise of the lady in the building society who said she was 99% sure we'd get it! She said it was apparently because we'd already consolidated our debts before and they were getting tougher on this - understandable. We then applied to another bank for a remortgage and were refused without explanation. My credit rating was very good and my husbands was only good due to a couple of missed payments months ago on a credit card which he thought he'd put onto direct debit. Do you think this is going to make it difficult for us to get a mortgage or does the passage of a time between applications make it better for us?

Nationwide???

chris8

Actually, yes!! How did you know? Also multipliers were fine, in fact we were told we could in theory borrow up to another £100K!!!