can we move into parents whilst waiting to buy house?

Sadie23

We moved to our current address January 2016, however we are seriously looking into buying over the next 6 months. Is it going to be detrimental for us to move back in with a parent before applying for mortgage as address will change?


The difference for us is going to be around £1300 per month that we can save up, but understand it may affect credit score if we were to find our dream home sooner rather than later. Has anyone had any similar experiences?


thoughts?

Pixie5740

It will be fine. Well your parents might get on your tits and you theirs but in terms of applying for a mortgage it will be fine.

Sadie23

Pixie5740 wrote: »

It will be fine. Well your parents might get on your tits and you theirs but in terms of applying for a mortgage it will be fine.

haha! that made me chuckle! Luckily they have a converted loft that is a holiday let that we can use.

saajan_12

Fine in terms of credit / mortgage. However especially if you are looking for a 'dream' home, this could take months before you complete - be clear about the potential timeframe before you go into this, especially if you'll be living in close quarters with your family or if they would lose rental income with you there.

elverson

Better to think in terms of 'houses you would be happy to live in for a few years' rather than 'dream homes'.

nicmyles

I'm not sure it's necessarily quite as fine as others are saying. We moved in with family for four months while waiting for a chain to complete, but we already had a mortgage offer in place. We did notice that our credit scores dropped temporarily as we weren't on the electoral roll anymore, had changed address recently, etc. Apparently this is very common. Didn't affect us, but conceivably might affect you.

Less importantly, but still annoyingly, we had to change our address with all financial providers to the family address as although we had a post redirect set up from the old address, the lender understandably wanted our "real" address and therefore all documents we sent them needed to match up with that. Again, could be an issue with your three months of bank statements.

My knowledge is relatively limited compared to others, though. I would speak to a mortgage broker and check what they think.

Pixie5740

The credit scores issued by the credit reference agencies are not seen nevermind used by any lender, and the credit reference agencies don't lend money.

juniordoc

It's a good idea, could you put down a good deposit without saving this 1300 a month? You will get a much better mortgage deal if you can reach a 20 or 25% deposit and will have the security of not flirting with negative equity if house prices do destabilise with brexit.

Sadie23

juniordoc wrote: »

It's a good idea, could you put down a good deposit without saving this 1300 a month? You will get a much better mortgage deal if you can reach a 20 or 25% deposit and will have the security of not flirting with negative equity if house prices do destabilise with brexit.

we currently have a 26% deposit, and the saving of £1300 will help with any work that may need doing. We have put an offer in on a house, which we will know if has been accepted today (hopefully) - which needs old wooden windows replacing and new kitchen as it is falling apart. Not been touched/updated in 25yrs basically. Searches in my area are taking in excess of 12 weeks at the moment so we know we could save a good chunk of money by the time completion comes around.

elverson

Sounds like you know what you're doing. Remember that you'll need to pay your fees and stamp duty (if applicable) upfront as well.

firebird082

We did this, as had to move out of our rented, and were in the process of buying. Ended up with them for 4 months, but never bothered changing addresses on thing, just had Royal Mail redirect in place for the post!