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Will my unsecured loan be included in mortgage LTV?

hellzapoppin09
Posts: 5 Forumite
hi there
i am new to the forum and would love some advice!
just planning to buy a house with my boyfriend.. i have an unsecured loan of £12k and am wondering if lenders are likely to ignore or include this when working out the LTV on the property we want to buy... ie if i we make £10k each on the sale of our houses so have £20k deposit, will this be used as basis of lending:
ie say on an 80% mortgage for a £100k house i would normally hope to borrow £80k from the bank. but will they say I already have borrowings of £12k so will then only lend a further £68k to make my total borrowings £80k = 80% of the house value?
thanks
XX
i am new to the forum and would love some advice!
just planning to buy a house with my boyfriend.. i have an unsecured loan of £12k and am wondering if lenders are likely to ignore or include this when working out the LTV on the property we want to buy... ie if i we make £10k each on the sale of our houses so have £20k deposit, will this be used as basis of lending:
ie say on an 80% mortgage for a £100k house i would normally hope to borrow £80k from the bank. but will they say I already have borrowings of £12k so will then only lend a further £68k to make my total borrowings £80k = 80% of the house value?
thanks
XX
0
Comments
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The LTV is not related to unsecured borrowing, so in your example of a £100k house with £20k deposit, the LTV would be 80%.0
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The loan is factored in for affordability and potentially credit scoring, but as _Andy_ says, not the ltv. As long as you are comfortably within income multiples or on the lenders affordability calculation then the loan shouldn't effect you.0
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ye ha that is great news. i can afford to pay the interest on my loan as far as affordability is concerned but was a bit worried that i would be entering the joint purchase of the house with negative £12k !! not a great start.
obviously i will seek advice from my mortgage advisor but didn't want to go into the discussion blind so thanks so much for your quick replies.
cheers xx0
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