How long to wait before appling for new mortgage

kaykay123

Hi, we have just sold a property we have been renting out. We now want to sell the property we are living in and use funds from both houses to purchase a larger one. We have just applied for a mortgage in principle and it showed we could only borrow a low amount although we have a large deposit. Could this be due to the old mortgage from the first property still showing on the soft credit report? We also have just paid off our credit card!


Thank in advance

ACG

It shouldnt be, but I suppose it could be.

Without knowing your circumstances, it is difficult to say. As a general rule of thumb, assuming no major debts, no more than say 2 kids and a 20-25 year term you can lend around 4.5x your income.

Jockeyjames

Like ACG said, I highly doubt your previous mortgage will affect affordability levels - as this will be detailed to the new lender that the debt has been paid.

More likely it will be down to either your income or expenditure.

Thrugelmir

Deposit doesn't determine the amount you can borrow. The amount you can afford to repay does.

kaykay123

I thought maybe the last mortgage was still on the credit report as the amount we have been offered is alot lower than the mortgage we have at the moment and we have really good credit rating! We have been offered less than x2 of our income, but we had a buy to let before and a second mortgage, I guess time will tell.