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Selling then renting before next property purchase - Credit rating effect?
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ADSrox0r
Posts: 28 Forumite
My partner and I are looking to bail out of our current property very soon and are looking at renting once we've sold to give us time to find somewhere we would really like to live next.
My question is, how does short term renting affect our ability to get a mortgage from a credit rating standpoint? Would this only be wise if you are a 100% cash buyer? We currently have spotless credit records with no blemishes and the sale of this property will hopefully net us around 40-45k in the bank after fees and such.
We are looking to move up the ladder so to speak and we would be looking at a mortgage with a 15-20% deposit.
My question is, how does short term renting affect our ability to get a mortgage from a credit rating standpoint? Would this only be wise if you are a 100% cash buyer? We currently have spotless credit records with no blemishes and the sale of this property will hopefully net us around 40-45k in the bank after fees and such.
We are looking to move up the ladder so to speak and we would be looking at a mortgage with a 15-20% deposit.
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Comments
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your credit rating is effected by many things- one such thing is the length of time in a property - if you live somewhere for only 6 months, you are more of a credit risk than someone who lived somewhere for 6 years...
from a mortgages standpoint, the loan is secured so the short term rent should not affect the getting of a mortgage too much0 -
Any other input on this anyone?0
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