mortgage & borrowing

wills7

Can anyway guide me on this bearing in mind i maybe completley wrong in my thinking. I've had my mortgage 3 months and i now want to buy a car how possible if infact at all is it likely that my mortgage company will lend me the money to do this and ad it to my mortgage i'm only talking about 5 grand?

dwsjarcmcd

It's possible but depends on many factors. What percentage of your property value is your loan? Will your income cover the additional loan? I think you should ask your lender about a further advance.

Be aware that by doing this, you could be paying for the car for a very, very long time. There may also be some fees to consider

wills7

i paid a 10% deposit on it i bought it for 155,000 the flat is now worth 220,000. i don't know if that makes any difference?

Cara79

But why not just get a loan? At least that way you will be able to pay it off in a couple of years. By putting it onto your mortgage, you will be paying interest on that £5k for 25 years!!!! Seems a bit extreme to me.

I guess it all depends on affordability.

cara
x

wills7

my credit rating is pretty poor (well very)!!

Cara79

Ah, ok. Well I guess the first thing is to approach your lender to see what they say. I suspect your income will have to support the extra borrowing and this will also no doubt be at a different interest rate.

One question though, if you bought your flat for £155k 3 months ago, how has your flat increased to £220k in 3 months??? The lender would have do undertake another valuation of the property.

wills7

it was a repo. i got a very good deal on it. it was sold to the guy who had it repo'd for 220k in 2003 so maybe it's worth more now...
It's not the end of the world if they wont lend me the money as it's not neccassary to have a car just yet it would just be nice..