How long should I wait before applying for a new mortgage

AdrenalineJunkie22

Hello all,

Myself and the mrs are finally looking at moving in together, so I have sold my house and she is living with her parents.

The contracts are due to exchange on 28th July, my question is how long should we wait before applying for an AIP (Agreement in Principle) for our new home.

My thinking is I will need to wait about a month for the credit reference agencies to update to show my old mortgage as settled??


Thank you in advance

Senior_Paper_Monitor

Errrrrr - how do you expect to exchange (i.e sign a contract committing you to buy) in 12 days time if you haven't applied for (let alone received an offer for) a mortgage ?

Average time to offer from application is in the 3 week range at the moment !

You simply apply on the basis that your old mortgage will be paid off


I would suggest you consider getting a broker to help you. Have you got a solicitor on the case ?


Finally better break the news to the vendor that you won't be exchanging in 12 days - better now than then !

kingstreet

Why are you waiting for your old mortgage to be settled?

Most borrowers disclose their commitments and then tick the "to be repaid on or before completion" box so they are ignored.

FWIW the old mortgage is settled at completion, not exchange and then it may take another month or two for that to hit the credit system.

An independent broker may be able to help you understand the mortgage system a little better...

An AIP should be sought before you make an offer.

AdrenalineJunkie22

Senior Paper Monitor - the contracts exchange on my old house on 28th July....

KingStreet - Contracts exchange 21st July and completion is 28th July, sorry for the confusion. I rented out my old house and i'm selling to a landlord so no body is actually moving house.

I bought my old house in my name under a Taylor Wimpey shared equity scheme. I thought it would be easier and less stress to just settle everything with the old house. The new house will be in a joint name and we have a deposit ready to go.

I thought moving the mortgage would mean we would have to rush to find a new house

kingstreet

So you're moving out and completing your sale before your purchase?

AdrenalineJunkie22

Yes. I rented out the property 6 months ago so am already moved out. We are currently living with our parents

My question is do I have to wait a month or so after the completion of my old house (settling the mortgage) before applying for an AIP so we can go looking for our new home

kingstreet

No, you don't.

Disclose it as a credit agreement which will be repaid before completion of the new one. Then you cover the possibility of the credit system not being updated.

AdrenalineJunkie22

Thank you