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  • FIRST POST
    • kaykay123
    • By kaykay123 10th Jul 18, 8:22 PM
    • 2Posts
    • 1Thanks
    kaykay123
    How long to wait before appling for new mortgage
    • #1
    • 10th Jul 18, 8:22 PM
    How long to wait before appling for new mortgage 10th Jul 18 at 8:22 PM
    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
Page 1
    • ACG
    • By ACG 10th Jul 18, 8:28 PM
    • 17,490 Posts
    • 9,297 Thanks
    ACG
    • #2
    • 10th Jul 18, 8:28 PM
    • #2
    • 10th Jul 18, 8:28 PM
    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.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Jockeyjames
    • By Jockeyjames 10th Jul 18, 8:34 PM
    • 10 Posts
    • 4 Thanks
    Jockeyjames
    • #3
    • 10th Jul 18, 8:34 PM
    • #3
    • 10th Jul 18, 8:34 PM
    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
    • By Thrugelmir 10th Jul 18, 10:54 PM
    • 59,774 Posts
    • 53,116 Thanks
    Thrugelmir
    • #4
    • 10th Jul 18, 10:54 PM
    • #4
    • 10th Jul 18, 10:54 PM
    Deposit doesn't determine the amount you can borrow. The amount you can afford to repay does.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • kaykay123
    • By kaykay123 11th Jul 18, 7:20 AM
    • 2 Posts
    • 1 Thanks
    kaykay123
    • #5
    • 11th Jul 18, 7:20 AM
    • #5
    • 11th Jul 18, 7:20 AM
    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.
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