Home owner or not?

Jc1

Hi folks,

My wife and I have just been accepted for a mortgage on a new build which won't be ready until April/May time, however, are looking to get a loan to help get the place together, flooring, turf etc, etc (can't add it to the mortgage as it is shared equity).

Anyway, the thing I am unsure about is do I declare myself a home owner or not when applying for the loan? We are obviously not paying a mortgage at the moment till we move in April/May time. I'm thinking not? Thinking it would make the loan look more affordable for me with no mortgage?
We have both been in trust deeds previously and have been out them about 2.5 years, only now are we getting accepted for credit again and the mortgage is a massive step for us, however, I don't want to jeopardise my credit rating or mortgage by doing the wrong thing!

Is it possible the Nationwide (mortgage) could withdraw our mortgage if I get a loan prior to starting the mortgage (change in circumstance)? Or is it nothing to do with them now they have approved us.

We can more than afford both the mortgage and the loan I would be applying for!

Any help would be much appreciated.

opinions4u

1. You're not yet a homeowner, so shouldn't state that you are until the purchase has gone through.

2. If your lender carries out further credit checks between now and completion, this could affect the mortgage offer.

If you proceed, do so with caution.

pinkarsenalprincess

I am really surprised that you would need to do anything with regards to flooring and turf in a new build shared ownership property....I've never seen any without these things and many now come with some white goods as well.

jamesd

Jc1 wrote: »

Anyway, the thing I am unsure about is do I declare myself a home owner or not when applying for the loan?

You aren't quite one yet. Clarify if you have the opportunity to provide additional information.

Jc1 wrote: »

Thinking it would make the loan look more affordable for me with no mortgage?

Depends how mortgage compares to any rent you're paying. You may also need to explain why you're buying furnishings if you give that as the reason for the loan and haven't agreed a purchase.

Jc1 wrote: »

Is it possible the Nationwide (mortgage) could withdraw our mortgage if I get a loan prior to starting the mortgage (change in circumstance)?

They are entitled to withdraw at any point up to the moment of completion. My lender asked for updated information from me during the week between exchange and completion and presumably also did new credit searches as well.

Contact Nationwide and ask them if they are comfortable with you doing this for the amount you're considering. Make sure they aren't surprised but instead know it's something that you've planned for and they have agreed to. They aren't your enemy, help them to work with you so everyone knows what is happening.

themull1

Is it not better getting a loan after you've definitely got the house and moved in?

diable

Wait until you move as if you get a loan now it may be far too tempting to spend the money on other things.

Apples2

I agree with the others, don't do it.

I wouldn't apply for ANY credit until you are safely moved in, you could end up with a lorry load of turf and flooring, but no house to use it on.

I've never heard of a new build where the new occupants have to turf the garden and put flooring down either.