Which way round - Sell then Mortgage?

Samwaydors

Morning

I just need some advice please.
We are putting our house on the market in the Spring, and wanted to know what you would suggest we do.

We need to apply for a mortgage with a broker due to adverse credit (one default) We have already seen a broker who has advised that this should not be a problem as we are putting down 15-20% LTV. However, do we put the house on the market and wait for it to be sold and then apply for a mortgage. Or, get a mortgage offer in principle and then put the house on the market ???

What our worry is, a lot of mortgage offers will only last for 90 days and if we haven't sold our house within that time then we will have to re-apply again which isn't going to look good on our credit file :undecided

Thank you

kingstreet

A DIP will be out of date before you sell.

Take the brokers opinion in your chances, get an offer on yours, then get the DIP so you know you can buy with confidence. To assist this, obtain all three versions of your credit file, so the broker can see the issues.

A DIP now will be a wasted credit search.

Samwaydors

Thank you, I am just worried that we will sell our house and then not be able to get another mortgage. I really do not want to rent and come out of a mortgage and off the property ladder. We only have one default for £40 put on my credit file in April 2013 and satisfied in June 2013 it was for Orange mobile. Broker has adv us to apply for a mortgage once default has been on credit file for over a year and we will need @ 15% LTV.