Buying while in rented property.(Mortgage affordability)

ukamber1

Hi All,

Hope this isnt a silly question....Please could anyone tell me if I would need to include the rent I pay in a "mortgage affordability calculator" if there is an overlap of "only" a few months between tenancy agreement ending and moving into the new property?

I hoping to be able to purchase a property and allow myself a few months to be able to make improvements before moving in. Is there any flexibility if I purchased a property (for example) 3 months before my tenancy agreement came to an end? Or would I have to have moved out and tenancy ended before mortgage starts?

Guess my question is: Would Lenders take into account the amount I pay in rent when deciding how much I could borrow or would they take into consideration that the tenancy was coming to an ending shortly after purchase?

Thanks for any help..

csgohan4

Lenders discount the rent. nothing stopping you buying and completing the house while you still are renting. Question is can you afford to?

ukamber1

csgohan4 wrote: »

Lenders discount the rent. nothing stopping you buying and completing the house while you still are renting. Question is can you afford to?

Hi, many thanks for your reply. Yes, I could afford to (as the overlap would only be a few months) but I guess my concern was if they included the rent in the "affordability" it might impact the amount the Lender would give me.

Sorry to sound alittle stupid....when you say Lenders "discount the rent" do you mean they wouldnt include the rent, as my tenancy agreement was coming to an end shortly after house purchase??

thank you again

silvercar

Sorry to sound alittle stupid....when you say Lenders "discount the rent" do you mean they wouldnt include the rent, as my tenancy agreement was coming to an end shortly after house purchase??

Correct, they assume that, as you will live in the property, you won't have rental commitments.

I wouldn't sweat about the overlap.

ukamber1

silvercar wrote: »

Correct, they assume that, as you will live in the property, you won't have rental commitments.

I wouldn't sweat about the overlap.

Appreciate your reply....thank you!