Mortgage Application Advise

Wantahouse_2

Hi All

My OH and I had an offer accepted on a 3bed terrace house yesterday so I'm looking into applying for our mortgage, and I'm just looking for advise on timing.

We currently own a flat (it was rented out until recently, but is currently vacant) that is under offer. Its been under offer since May and from our end its ready to go, but our buyers buyer is waiting for some queries to be answered from our buyers freeholders and thats holding the process up at the moment. Hopefully, fingers crossed this will be sorted by the end of August and we can finally exchange and complete and the money will be in our bank - this money is making up a large portion of our deposit.

What I'm wondering is, regarding the mortgage application is whether we should wait to apply until this is completed, since we won't be able to proceed if it doesn't complete, and if it does complete it won't be a factor in the mortgage application. Or should we apply now, with the details of this flat, and our current mortgage obligations in relation to the flat, even though it will be sold by the time we need to draw this new mortgage down? I'm worried about the flat effecting affordability? The mortgage our broker has recommended is with Barclays if that makes a difference (and once we complete we'll have a 20% deposit for the new house).

If it helps, we've made the offer on the understanding that we won't be able to complete until the end of November, and our vendors understand this and are happy with it.

Thanks for any advice

kingstreet

If you tell your new lender you will repay the existing mortgage on or before completion, they won't take it into account in the affordability checks. However, as you know, they will make it a condition of the new mortgage that it is repaid.

Only you can decide if your sale is solid enough to justify spending money on fees for the mortgage for the purchase at this time.

Wantahouse_2

Thanks for your reply kingstreet... obviously I'd like to believe that the sale is going to go through - trying to keep a positive outlook on that, but perhaps it wouldn't hurt to just hold off for a week and see if there's any further movement before applying for the mortgage - I probably need that time to get all the supporting documentation together anyway. I guess buyers in chains apply for mortgages while selling current properties all the time - just because we don't live in the place we are selling doesn't mean we aren't in that same situation.

Again thanks for the advice - its much appreciated

kingstreet

Can't argue with any of that. Your reasoning is sound.