How long to wait before seeing a broker

JohnsonsDreadlock

I've got a fairly substantial personal loan which I'm about to pay off in a lump sum. Current monthly payment on that loan is over £300 so that will obviously have an impact on affordability when trying to get a new mortgage for a house move. How long am I best waiting after its paid before seeing a broker for it not to have an impact on potential deals?

TIA

yksi

I would wait until the account appears as closed on all three CRAs. 

ACG

You dont need to wait. 
If you can evidence it has been paid off or even that you have the funds to pay it off, with most lenders there is a box to tick to say it will be cleared prior to completion and all but a few lenders will then ignore it for affordability purposes. 

jls85

My broker told me to go ahead and apply even though I planned to clear my loan with the funds from my house sale. He said he’d just let them know and they won’t factor it in. So I think you can go ahead now if you want.

K_S

JohnsonsDreadlock said:

I've got a fairly substantial personal loan which I'm about to pay off in a lump sum. Current monthly payment on that loan is over £300 so that will obviously have an impact on affordability when trying to get a new mortgage for a house move. How long am I best waiting after its paid before seeing a broker for it not to have an impact on potential deals?
TIA

There's no need to wait. Plenty of lenders will ignore it for affordability calcs if the loan will be paid off before completion to the extent that it shouldn't impact the competitiveness of the rate you get.

JohnsonsDreadlock

Thanks all for your advice. For my own piece of mind I'm going to make sure it's paid before I take the next step unless there is a compelling reason not to, I can't see one so far

It's been a long time since I've been able to claim to be debt free (mortgage excluded) 

K_S

JohnsonsDreadlock said:

Thanks all for your advice. For my own piece of mind I'm going to make sure it's paid before I take the next step unless there is a compelling reason not to, I can't see one so far
It's been a long time since I've been able to claim to be debt free (mortgage excluded) 

Of course, if the house purchase can wait and you would rather the debt was paid off before you embarked on the process, that's absolutely fine. The comments about there being no need to wait to see a broker were meant if you had a deadline to purchase.

Good luck for whenever you get to it, being debt free will definitely make it a bit easier for the broker/lender

JohnsonsDreadlock

K_S said:

JohnsonsDreadlock said:

Thanks all for your advice. For my own piece of mind I'm going to make sure it's paid before I take the next step unless there is a compelling reason not to, I can't see one so far
It's been a long time since I've been able to claim to be debt free (mortgage excluded) 

Of course, if the house purchase can wait and you would rather the debt was paid off before you embarked on the process, that's absolutely fine. The comments about there being no need to wait to see a broker were meant if you had a deadline to purchase.

Good luck for whenever you get to it, being debt free will definitely make it a bit easier for the broker/lender

Yeah I got that, was more an update and thinking aloud/getting my ducks in a row. 

Been toiling over this for weeks

Thanks all