Decision in principle and new build question

florita1

Can I apply for a decision in principle before I put my house on the market to sell? I've done some calculations using the affordability calculators and it's quite tight, say 5-10 k. Ideally I'd like to know what I can afford prior to selling

Also, I'm considering a new build. If I sell my house in 6-8 weeks and the new build isn't really for 6 months how does that work?

I'm assuming it will depend on if the buyer is prepared to wait?

TIA

lee111s

You can get an AIP whenever you want. They're usually valid for 30-90 days depending on the lender.

You either find a buyer willing to exchange and wait (unlikely) or you sell and move into rented or with family until the new houe is built.

florita1

AFF8879 wrote: »

You mention affordability is tight - make sure you use the detailed affordability calculators that consider all your outgoings as opposed to the more simplistic income-debt ones. Committed monthly spend can significantly reduce the amount lenders are willing to advance.

Also consider most lenders will require a much higher deposit on a new build.

Other than that - the gap between exchange and completion can be as long as you want it to be, as long as your buyer agrees to it. Also most mortgage offers have a validity period, normally up to 6 months. But your deposit to the new build developer is due on exchange, so you'll need the cash before the sale of your current place completes.

If it were me, I would sell first then move into rented as suggested above. Far less risky / stressful IMO!

Hmmm I'm not sure rented is an option but something to think about

Our deposit is £120000 minimum but I've taken stamp duty and fees out of the calculation and hoping to negotiate to have some of these paid, property c500k

I've been using the affordability calculator for intermediaries and slightly overestimating our outgoings to try to get a good idea of what they might lend