Mortgage question

jackie_w

Is there any way that I can check to see if I will get a mortgage even though I havent bought my new house yet?

hubbie and I have just put our house on the market, but, now, im starting to worry incase we cant get a mortgage for a new house (max house purchase would be £250,000, and deposit would be £60,000, so max mortgage we would need would be £190,000).

I was going to check with my existing provider, because when we have been doing checks on the internet, A&L have been near the top of the bunch.

Would I be wasting the banks/building societys time if I asked them to check before we bought a house?

Jackie

MortgageMamma

Hi Jackie

Your best option would be to speak to a whole of market mortgage broker, get them to recommend a mortgage to you, and then approach that lender to get something called an agreement in principle (mortgage promise) which will credit check you and say whether or not you can lend that amount of money.

Obviously this should only be done once as too many credit checks can damage your credit rating and decrease your chances of obtaining the mortgage, which is why a broker is best to find you the right mortgage and the lender most likely to accept your business.

jackie_w

Thanks for replying Mortgage Mama,

Someone told me I would be better to stay where I am because Im actually tied in to A&L until June 2010. Both hubbie and I have good credit ratings, we have about £8500 of "debt", but, if it takes house a while to sell, this will be reduced to about £6000. Hubbie is self employed and has been since November 2005, and earns about £50,000 now per year.

Im actually worried incase we cant get a mortgage. Do you think im worrying for nothing?

Jackie

herbiesjp

Indeed it may well be worth looking to "port" your current deal and take out any extra funds on one of their current deal.

It is pretty straightforward as long as your income etc is sufficient to cover the current mortgage and the top up amount

Have a word with a fee free whole of market mortgage adviser and they will be able to get you a KFI from A&L to show you what your costs would be if you ported, and if you went for a new deal with a new lender

HTH

MortgageMamma

Hi Jackie

Whether its best to stay with A&L depends on the current rate/deal uyou are on and whether any savings can be made if you pay those early repayment charges and take a new mortgage. This is something best looked at by an adviser.

Have you checked if your existing mortgage with A&L is portable? This means you can transfer it to another property if you need to move, so long as the lending amount and property type is within A&L's lending criteria

One way you could find out is if you approached them and asked them to agree in principle the porting of the mortgage with the additional borrowing, and asked them to stipulate the maximum they would be prepared to lend you