Mortgaging immediately after cash purchase

Ozymandias88

Dan_Collins wrote: »

You are not defrauding anybody, but it opens the lender up to it, so they stop it full stop.

You can start the process, some lenders will let you make the application.

You will need proof of address so make sure you get that sorted asap.

thanks again; but the application won't actually be processed until I've been living there for 3 months?

tinkerbell84

Out of interest, how are you affording £925k for the house?

Wouldn't a 25k loan rather than a mortgage work here?

Ozymandias88

tinkerbell84 wrote: »

Out of interest, how are you affording £925k for the house?

Wouldn't a 25k loan rather than a mortgage work here?

proceeds from the sale of our previous house plus savings and some money gifted from family.

I presumed the interest on a loan for £25K would be way higher and the term much shorter than a mortgage leaving me with really high monthly payments.

I'm also guessing a loan secured on the house would have the same problem of a 3 month wait, but I'm not sure on any of the above(!!)

tinkerbell84

Ozymandias88 wrote: »

proceeds from the sale of our previous house plus savings and some money gifted from family.

I presumed the interest on a loan for £25K would be way higher and the term much shorter than a mortgage leaving me with really high monthly payments.

I'm also guessing a loan secured on the house would have the same problem of a 3 month wait, but I'm not sure on any of the above(!!)

i was thinking of an unsecured loan, but I don't know how that would work

maybe you could get the loan now, move into the house, and then a few months later get a mortgage and clear the loan. you'd have higher payments for a few months, but you'd save time.

mark55man

Tinkerbell just posted what I was going to advise. Under those circumstances an unsecured loan shouldn't be hard or expensive to get.

Also you don't necessarily need any money straight away. Have you budgeted for the work that needs done? I would expect you to be able to negotiate with your tradesmen to get paid at the end of the work for a job of the size you are talking about (or maybe a relatively small series of labour cost payments). You may also be able to offer them a little extra to accept a final payment after your finance is clear

also you should be able to get a reasonable amount of fixtures on a zero % card for purchase which you can then pay off with the mrotgage money (but think about the term of the mortgage as paying for white goods 22 years after they have broken may be unwise!!)

Ozymandias88

mark88man wrote: »

Tinkerbell just posted what I was going to advise. Under those circumstances an unsecured loan shouldn't be hard or expensive to get.

Also you don't necessarily need any money straight away. Have you budgeted for the work that needs done? I would expect you to be able to negotiate with your tradesmen to get paid at the end of the work for a job of the size you are talking about (or maybe a relatively small series of labour cost payments). You may also be able to offer them a little extra to accept a final payment after your finance is clear

also you should be able to get a reasonable amount of fixtures on a zero % card for purchase which you can then pay off with the mrotgage money (but think about the term of the mortgage as paying for white goods 22 years after they have broken may be unwise!!)

thanks for that; was hoping to avoid taking out / applying for 2 big loans in one 3 month period but not looking that will be possible; not sure I'll be able to get that big an unsecured loan but will investigate further.

mark55man

you are welcome. I can't believe with the equity you have you would have trouble getting a loan - but you are wise to consider impact on credit scoring and general level of hassle doing things twice entails. only you will kow if the piece of mind you get from having funds available is worth the cost and hassle.

one other thing - have you completed (ie paid) yet? if not why could you not add a mortgage as part of the initial payment (again with your equity can't believe even now there would be a problem) and retain some of the cash - ie do it as a mortgage not a remortgage on day1

PS - I am not an expert so you may want to take better advice than mine

mark55man

double post - doh!