Existing loan and mortgage application

donz23

We are looking to apply for a mortgage in the near future. My partner has a 5 year loan and the final payment date for this is dec 2013. We have looked at the nationwide mortgage calculator and it says it discounts loan payments if they are ending in the next 6 months (so we were thinking of holding off till June). My question is is this 6 month rule standard across the board when applying to mortgage companies? Does any company have a longer time frame so we can apply sooner?

Thanks

Thrugelmir

Much depends on the impact of affordability of the loan. Could you not use savings to settle the loan early?

donz23

But if we don't have to declare the loan as it is finishing surely we would be better off not paying it off and having a larger deposit?

Thrugelmir

donz23 wrote: »

But if we don't have to declare the loan as it is finishing surely we would be better off not paying it off and having a larger deposit?

Is six months loan repayments that significant?

Have you a house in mind?

donz23

Not yet we are just Internet browsing and saving up the last bit of deposit but would look into a mortgage if we saw a house we really liked hence my original question. Just want to be prepared!

To pay it off would be about £1000 of our deposit so that's why I'm saying to hold off until we are in the 'non declare' timeframe and have the larger deposit which will help our mortgage app?