Mortgage application with address change

02346631 · 3 July 2017 at 5:27PM

Hi All,

FTB here with a couple of questions in the hope that someone has experienced similar. I’m currently in the process of buying a house, valuation has come in ok and I’m hoping I’ll get an official offer this week or next. The house I’m buying is in a chain so I’m assuming it’s going to be a couple of months minimum before I’m in a position to complete. The owners of the place I’m buying have only just found somewhere as well so starting the application process now.

Now the issue I’m having is the flat I’m renting currently is being sold by the owner which I wasn’t expecting. It’s gone on the market today with no chain in a popular FTB area so I’m expecting it to sell really quickly. On that basis, I think I’ll be out of here in a couple of months maximum so I’ll essentially be homeless. I’ve got friends etc I can stay with temporarily so no disaster there.

My question is if the bank is likely to have an issue with me changing my address during the purchase? I’m sure this happens quite frequently but I’m not sure how it works. I’m a bit worried about falling off the electoral register and address changes hammering my credit rating. I’m also finding myself thinking of worst case scenarios where it takes a long time to complete and my mortgage offer expires meaning I have to re-apply.

Has anyone had an experience of something similar and how it worked? I have one other quick question as well. Should I wait till I get my mortgage offer before I book the building survey? I can’t imagine there being an issue with the offer but you never know I suppose. This house buying thing is stressful to say the least!

Thanks for reading,

Chris

aneary · 3 July 2017 at 5:38PM

I would wait until further along before getting a building survey in case things fall through and you lose your money, I lost money on a survey because the seller with held information about a dispute until we were very near exchange.

kinger101 · 3 July 2017 at 6:23PM

I've recently had a similar issue. Though I've not made an offer on a property yet, I have sold one (completed), and there will be a lag in the time it will take for the credit agencies to obtain the electoral roll details for the property I'm renting in the interim.

I spoke directly to the bank I have my current account with (their mortgage rates are good anyway), and managed to get the DIP which included a hard credit check. They've assured me at won't be an issue.

Really, you need to speak to whoever you intend to borrow money from.

kinger101 · 3 July 2017 at 6:28PM

aneary wrote: »

I would wait until further along before getting a building survey in case things fall through and you lose your money, I lost money on a survey because the seller with held information about a dispute until we were very near exchange.

Some form of survey would be done before the mortgage offer is made, for the purposes of valuation. Some people combine the banks valuation with their own more detailed survey.

Waiting for a TA6 back before a survey might make sense, but you can't stall these too long without the vendor deciding you're not a serious buyer.

G_M · 3 July 2017 at 6:39PM

02346631 wrote: »

........ I’m assuming it’s going to be a couple of months minimum before I’m in a position to complete.

......... the flat I’m renting currently is being sold by the owner which I wasn’t expecting. It’s gone on the market today ....so I’m expecting it to sell really quickly. ........I think I’ll be out of here in a couple of months maximum

Makes no sense.

* what makes you think your current home will sell so much quicker than your buyer's? It might, it might not
* plus properties with tenants in stitu take longer to sell than empty or owner-occupied properties
* have you been served a S21 Notice. If not, you have: 2 months grace, + however long it is before you receive a S21, + however long it is before the LL then applies to court, + takes the LL to get a court date, + bailiff time....... so 4+ monthss
* how cooperatice are you being over access by the LL/agents etc for viewings, photos, survey etc?

02346631 · 3 July 2017 at 7:17PM

Thanks for the feedback everyone, I've been told I should have an update from the bank tomorrow. It's taking a little longer because my case is being audited. So I'll definitely wait to get my DIP before going for a survey I think as it should be soon. The bank has already done the valuation but I'd like a full one as well because it's a victorian terrace.

G_M wrote: »

Makes no sense.

* what makes you think your current home will sell so much quicker than your buyer's? It might, it might not
* plus properties with tenants in stitu take longer to sell than empty or owner-occupied properties
* have you been served a S21 Notice. If not, you have: 2 months grace, + however long it is before you receive a S21, + however long it is before the LL then applies to court, + takes the LL to get a court date, + bailiff time....... so 4+ monthss
* how cooperatice are you being over access by the LL/agents etc for viewings, photos, survey etc?

I'm making assumptions there I know but i'm just thinking it's more than likely going to be bought by a FTB so no chain. Where as the one i'm going for may well be. Waiting to hear how big the chain is at the moment. It also only went on the market today but theres 5 viewings already. The market is crazy in Manchester at the moment.

I've not had a notice yet but i'm only on a 30 day rolling contract so they'd only have to give me a 30 day notice I think? I've been very co-operative with the owner and estate agent because she's always been really good with me since i've been here.

02346631 · 3 July 2017 at 7:28PM

kinger101 wrote: »

I've recently had a similar issue. Though I've not made an offer on a property yet, I have sold one (completed), and there will be a lag in the time it will take for the credit agencies to obtain the electoral roll details for the property I'm renting in the interim.

I spoke directly to the bank I have my current account with (their mortgage rates are good anyway), and managed to get the DIP which included a hard credit check. They've assured me at won't be an issue.

Really, you need to speak to whoever you intend to borrow money from.

Thanks for this. I'm going through a broker so i've been trying to get hold of them today. I'll make sure they speak to the bank about a potential address change and get some assurances from them if possible.

02346631 · 8 July 2017 at 10:59AM

Hi All,

Quick update, I found out that the house the owners are buying is not in a chain so that's good news, more hopeful of it completing before I'm out of my flat now.

Still don't have my mortgage offer yet though which is frustrating. I was expecting it at least a week ago but it's been chosen for an audit. Don't suppose anyone has experience of that do they and how long the delay normally is? I'm going through Barclays mainly because the broker told me they work quickly :-(

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Mortgage application with address change

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