Just as I was about to write an update, saying we have been on the market for one month and not had any interest, we got a phone call! We have a viewing booked for Tuesday! We have a LOT of tidying to do before then. It’s impossible to keep the house spotless and clutter free at the minute. So, that’s what we’re doing this bank holiday weekend.
If we manage to sell the house, we’re going to have to start the mortgage application process again. We went to the bank in February to start the application process and see how much we could borrow. It was all pretty simple then, our combined income minus any loan repayments and utilities etc, multiplied by 3.12. Since then new rules have come into force.
These new rules will undoubtedly reduce what we are able to borrow as they now take into account where pretty much every last penny goes. I’m trying to be good and cut out McDonald’s because that will be embarrassing when they’re going through my statements with a fine toothed comb!
I understand why they have done it, to avoid the reckless lending of a few years ago. My worry is that it will slow everything down and cause more sales to fall through. Also that it will push house prices down, reducing the equity we have and forcing us into a higher loan to value mortgage.
Still, we’ll cross that bridge when we get to it. Got to actually sell this house first!