When to get Mortgage Sorted

mistertml

Hi

As mentioned in a previous post, we have sold our property and just waiting for a completion date. An investor is purchasing our current house and it should place us in a better position when buying our next house.
We are currently looking for another property and wanted to know when we should start to get the ball rolling with regards getting a new mortgage sorted?

Thanks in advance

Jockeyjames

Depending on your affordability (income and outgoings), there's no real reason that you can't get the ball rolling now. A decision in principal is your first step to get pre-approved for the mortgage, then when you've found the property that you want to buy then you can proceed with your full application

sal_III

Decide on a budget, pick a MB/Lender and apply for Decision In Principle for the amount you want to borrow. You can't apply/get mortgage offer without offer/reservation on a specific property. The the furthest you can roll the ball is DIP.

JoJoBean

There may be variation between lenders though a Decision in Principle typically is only valid for 3 months, after which you would need to reappy or enquire with the lender to see if they will extend it. One or two DIPs shouldn't make a difference though multiple applications can affect your credit score. Got our DIP recently with Nationwide and that was their advice at the time.

Shouldn't be an issue if you are hoping to make an offer on a property in the nearish future, though worth bearing in mind.