Will having a loan stop me from getting a mortgage?

davidfrancis

I'm looking to take out a 4 year loan for £5500 and I am just worried that this will prevent me from getting a mortgage in about 18months to 2 years time. Between me and the missus we will have enough savings for a sizeable deposit, but I don't want the £135 a month coming out of my account affect the bank's decision to give me a mortgage.

Any help appreciated.

Many thanks.

Fang_3

Why do you need a loan if you have substantial savings?

davidfrancis

I don't at the moment. I made silly purchases before now, and have a loan which was costing me £300 a month. I've changed that to £135 now so I can afford to live and save a little too.

CLAPTON

yes it will affect the amount they lend you but it won't of itself prevent a mortgage offer

how much do you have in savings
how much will you be looking to borrow
how much is your income

davidfrancis

We should have combined savings of around £10,000. Combined we earn £46,000 pre-tax. Have no idea what the value of the house would be, between £140-170k,
Thanks for your help Clapton.

CLAPTON

there are various mortgage calculators on some of the major lenders' websites ... worth having a look as many ask your leave of debt

however realistically you will need a minimum of 10% deposit, 10k on 140k purchase is unlikely to be successful

_Andy_

...in addition to which you'll need money for legal fees, valuation fee, moving costs, changing locks, contingency, etc