Moving back home affect my mortgage?

GinnyP353

Hi there.

I'm wondering if someone can help me with a query. I'm looking to sell my.flat and buy a house. I know patience is a virtue but I've been having some issues with my  neighbours and the property market is booming where I live...as in flats are selling in 48hours for waaay above the asking price.

My challenge is I have a big credit card bill..if I sell now and move in with my parents, I can pay the credit card bill off, have a good deposit and build up good monthly affordability for 3 months or so to buy a house. This means I will pay my mortgage off and the small fee as the rate is there for another year. If I don't sell, I'll be paying off my credit card till summer/autumn 2023 and then will sell but will have to build up affordability. 

If I sell now and move back in with the parents, will it impact me getting a mortgage 3-6 months down the line? I'll obvs go on the voters  roll etc and my credit score is good...it's just the affordability and making sure I'm comfortable for stamp duty etc.

Thanks in advance

K_S

@ginnyp353 Nope, it should have no material impact on its own. What you've described, breaking the chain by going in with family/rented has been more common than usual since covid, and I've never had an issue placing clients simply due to a new address.

Depending on the timing of your move, the electoral roll can take many months to get updated and reflect on your credit reports, but again that's not an impediment to getting a mortgage, irrespective of what you may read.

Breaking the chain simply for the credit card debt might be unnecessary. Unless you're looking at 90/95% LTV onward purchase, you can still use mainstream lenders who will disregard background debt to be paid off from equity from sale.

Catpuss66

I would have thought it would of put you in a better position, both financially & from a chain point of view. Not sure it would have any impact on getting a mortgage unless things financially change

GinnyP353

Thanks everyone. Your advice is greatly appreciated xxx

gwynlas

You have not said why you have a large credit card bill but in my case I first got into debt furnishing my home. I remained in debt for many years and would advise anybody now to make use of gifted and free furnishings rather than trying to make everything perfect straight away.