Applying for a loan - Timings everything

Akom

Hi MSE fans

Could i please pick some of your brains?

My DW and I are currently in the process of moving. We have applied for our larger mortgage which has been AIP'd. We have also received a letter from the lender stating that our application has been agreed subject to references and documents being satisfactory. Survey has also been completed.

We also need to take out a large loan to enable us to move. The loan is not for the move itself but to cover the 'Major works bill' the Council have levied against us which we must settle before moving. There is no room for it to go on the mortgage.

We can comfortably afford the loan, however, we do not want to apply for it before the mortgage lender has finished doing credit checks on us for obvious reasons.

My question is:

Is it safe to apply for the loan now?


Many thanks in advance for your help.

Tixy

Hi

I think the mortgage company will do a further credit check just before exchange - hopefully someone can confirm if this is right.

Emmzi

Tixy wrote: »

Hi

I think the mortgage company will do a further credit check just before exchange - hopefully someone can confirm if this is right.

Most lenders do, yes.

If you can't afford mortgage plus loan in the eyes of the mortgage company, you can't afford to move. What you are suggesting is definitely a bending of the rules if not fraud - because you do have intent to decieve.

I would be upfront and tell your lender what you propose and see what they say. At least then you can sleep soundly either way.

Akom

Thank you both for your reply.

Not quite sure i agree with you Emmzi, Ref fraud, as i have mentioned this to both my solicitor and my lender on initial application and nothing was metioned then.

I see no diffence between what i'm doing and applying for a loan as soon as i've moved in to do some home improvements.

Still, i might have missed something and you're right.

ILW

Tixy wrote: »

Hi

I think the mortgage company will do a further credit check just before exchange - hopefully someone can confirm if this is right.

They can withdraw the mortgage offer AFTER exchange, that is when the fun really starts.

Emmzi

Akom wrote: »

Thank you both for your reply.

Not quite sure i agree with you Emmzi, Ref fraud, as i have mentioned this to both my solicitor and my lender on initial application and nothing was metioned then.

I see no diffence between what i'm doing and applying for a loan as soon as i've moved in to do some home improvements.

Still, i might have missed something and you're right.

If you are sure you are right, and everyone is aware, then apply for the loan now, and list it as a debt on your mortgage application.