Should I wait for MIP

hillco85

Hi

I'm looking for some advice. Ive recently been gifted some money and in the last 2-2 and 1/2 weeks I've paid off nearly all of my credit card debt (about 15,000).

I will have enough for a 5% deposit in the next fortnight as well. I've made an appointment to see a mortgage advisor but I would like to know if I should wait until my credit file shows that the credit card debt has nearly gone. I've used up my free trials with Experian/equifax in the past to be able to check daily, and I've used the free money saving tool but my next report isn't due for a few weeks. I have got a 30 Day trial for checkmyfile but the records aren't yet updated and the debt is still there.

Should I wait for a few weeks before seeing my advisor and getting a mortgage in principle? I don't want to get declined or be offered a lower mortgage because my debts are still on file.

Any advice is welcome.

Thanks

juniordoc

I would start booking some viewings for properties first, it might take a couple of months to find one you like and then this no longer becomes a problem.

hillco85

Thanks for the reply.

We have started to look but do you think we should wait before applying for a mortgage in principle then?

Thanks

Fisa002

No harm done in talking to a MB and getting a DIP beforehand. That way you can see how much if at all they are willing to lend. You will then have an idea of the house prices you need to consider upto.

hillco85

Thanks for the advice. Do you think that it won't make a difference to the MIP application if I don't wait until the records are updated?

I don't mind waiting but if there is no point and the MIP won't be affected by this I would prefer to get the process going.

Thanks again.

Thrugelmir

You can obtain indication of the likely amount you can borrow using lenders online calculators.

Will take a number of weeks for your credit history to reflect the settlement of your debts. If you've only a small deposit and you are a FTB. Then maybe worth opening a HTB ISA and boosting your savings a little.

hillco85

Thanks for the reply.

So do you think I should hold off and open a help to buy isa and wait a few months?

Thanks

juniordoc

Yes get the HTB ISA rolling asap so you can claim the bonus. No need to apply for a MIP until you find a house you want to offer on.
As others have said you can use online calculators to give you an idea of what price house you can hope to obtain.
If you are able to save up to a 10% deposit you will find more lending options and better mortgage rates available to you.
Happy house hunting!