Should we apply now for mortgage?

Hopejack

I posted a few days ago about the possibility of getting a mortgage for myself and DH. I think on paper it doesn't look an issue - no credit issues etc, large deposit etc. But I am not working - at home with two small children.

Anyway, I'm now worrying myself that we will not get a mortgage hopefully Spring time ish next year. We need to sell our house first so I am massively jumping the gun but I'm worried we sell it and then see our dream house and we can't get a mortgage! So, should we go to a lender now (or maybe our bank - Lloyds) and ask about a MIP now just to get an idea if we will be OK? Or just leave it until we are in a position - don't want to miss out on a house because we don't have finances in place etc.... But I'm aware that searches on your credit record can cause probs.

Help please!?

PS - I believe even with a MIP, the lender could change their mind anyway so is it worth the paper it's written on? Also, realise a MIP now won't hold out until Spring ish next year but will give us an indication if it's going to be an issue getting finance....?

herbiesjp

So many things could happen between now and next Spring, in terms of lending criteria, that you are probably better off waiting until nearer the time.

Hopejack

Thanks Herbies I know you are right of course, I'm just worrying!!! Don't want to sell and find we can't get a mortgage. I'm sure there won't be too much of an issue but I'm not sure our credit ratings will be strong enough - we don't have enough debt!!!!

We did have two mortgages at one point (for a period of 2 years on 2 different properties) but we were lucky enough to sell one property and pay off the mortgage on our property we still own - so unmortgaged. This all happened about 6 years ago so sadly not on our credit reports now so it looks to a lender like we've never had a mortgage - despite the fact we paid it off fully in 4 years! I'm hoping we can somewhere put this in our application so bolster it up??

herbiesjp

Just make sure you are on the electoral register, and clear a credit card balance each month

That will keep your credit history ticking and up to date

Hopejack

I don't own any credit cards and tbh don't want to apply for one now! I have had two in the past which are still on my credit file - they are old though and 'settled' but were used at one point and show no probs paying.

DH has a credit card taken out earlier this year - long story but the bank persuaded him to take one out after I had some fraudulent activity on our account (someone got my debit card details and had a nice spending spree!). We've used it once or twice this year and paid on time/cleared balance.

We are both on electoral roll.

Still concerned our rating won't be great because we don't have any current debt really. I do have two catalogue accounts on my file which are ongoing and paid off every month.... Also an old car loan which I paid off early so that's on my file.

Thanks for all your advice - it's people like you that make this place so good.