Mortgages & Personal Loans

seabass

I was thinking of taking out personal loan for the car and using the deposit I have already as a mortgage deposit....this is effectively like getting a loan for the remaining deposit.

I can afford the monthly repayments of the personal loan and the mortgage.

Would this effect the interest rates much or the amounts that I would be able to borrow for the mortgage? The car I am looking at is about £3k so the loan would be for the same amount.

I need a new car pretty soonish. I was thinking I could just get a cheap but reliable car in the mean time until I got the mortgage and then take out the loan to get a decent car afterwards, would this be a better idea? Or would a £3k personal loan not really effect my mortgage much if I was to take it out before?

Yorkie1

I am not an expert but I frequently read on here that loans will impact on many lenders' affordability assessment of your finances. I did have a friend who, some years ago, deliberately did not apply for a car loan before getting a mortgage, in order not to affect his mortgage assessment.

I don't know if that's still the case but that would be my fear - particularly if the mortgage figures were relatively tight.

Thrugelmir

Why not buy the car for cash, and rebuild your deposit?