Will soft credit check be seen by mortgage lenders? And is this a best time to buy?

JonMitchell

Hi all

Query 1
I have been "shopping" around (homework for myself) to get AIP/DIP from few mortgage lenders. They carried out a soft footprint check before offering an AIP/DIP to me.

Was wondering if these soft footprints will be seen by mortgage lenders when I submit my full mortgage? I'm most likely to use a mortgage broker for this application.

Query 2
With the Brexit in place, is it a good time to buy a property as an investment now? Interest rate may go down but mortgage rates but have adverse effects of raising due to the uncertainties in place. I am thinking either to hold buying a property as investment and wait, or the other is to lock down to a 5yr fixed rate now.

Thanks for your time and advises.

MortgageMamma

Query 1 - its irrelevant if its a soft credit check, it does no damage to your credit file and plenty of people dip their toe in the water before applying for a mortgage. Good plan to use a broker though.




Query 2 - do what is right for you now don't worry about the big wide world around you, just look after yourself. None of us has a crystal ball - house prices could go up or down, mortgage interest rates could go up or down, cost of living in general could go either way - we are in unchartered waters finding our new place in the world. You also need to consider that if the economy does turn bad (it might not) mortgages could become more difficult to get (like 2008-2011).


I hope this helps,


MM

JonMitchell

Thanks for the advise MortgageMama!

I live South East and one of my dilemma at the mo is whether to buy a property up in Scotland, saw a property I like. Not knowing if they will have a 2nd referendum for independency. It might be a case of Euro income for that property in future + not to mention any legal changes for property owners.

But as you have said, no one has the crystal ball as this stage + Westminster is like a headless chicken at the moment!

MortgageMamma

I think the only sane way to look at this insanity is you are buying a home, not an investment. If you dip into a bit of negative equity for a while its not good in the short term but if its your home and not something you are looking to sell and you calculate your affordability based on say 8-10% interest rates it would give you a bit of reassurance.


As for buying in Scotland, I go that way annually up to the highlands, I was considering the same for myself once my youngest has left school. I was up there in 2014 when they were having the referendum about leaving the UK. The atmosphere was horrible, we were treated like outsiders despite being regulars for over 10 years where we were staying. We felt very awkward so didn't go back last year, but this year we are returning for the October half term but anxious that we are going to get the cold shoulder again!

JonMitchell

Thanks MortgageMama - thanks for the wise words, greatly appreciated!

I have similar thoughts to being giving the cold shoulders, had put in a bid this Monday and already getting quite a bit of cold shoulder from seller's agent and solicitor.

PS: I had posted another query on MS. All in all the Brexit ain't helping in the short term.

MortgageMamma

No the brexit certainly isn't helping anything at the moment but I did have a few laughs watching prime ministers questions at lunchtime today. I'm generally the unflappable sort, but even I had a mini panic attack about going to France and the exchange rate last week. Be glad when things settle down a bit.

JonMitchell

"For Heaven's sake man, GO!!!!" - with that I referred to David Cam to Jeremy Cor