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Will taking out a loan affect BTL Mortgage application?

moatmeister
moatmeister Posts: 329 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
in Mortgages & endowments
Got BTL mortgage application going through. All financials etc been checked and approved. Will taking out a personal loan or credit card advance prior to mortgage completing affect it?

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Depends if your lender does a spot check before releasing the funds and wishes to follow up on the matter.

    Is this to fund the deposit on exchange of contracts?
  • herbiesjp
    herbiesjp Posts: 8,499 Forumite
    It shoudn't affect the loan amount, as that will be dictated by the rental income.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • moatmeister
    moatmeister Posts: 329 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Its to partly fund deposit. was all sorted out and due to complete before christmas, then unfortunatly one of the joint vendors died causing long probate delay until recently. In the mean time I had to spend some of it. Now about £4k short of £30k total required. and compounded by BS putting £4k retention on some repair work so in total a £8k shortfall. Confident about being able to borrow in principle but dont want to jeoperdise mortgage going through.
  • moatmeister
    moatmeister Posts: 329 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Also, its a variable situation at the moment because the longer it drags on the more I can sell or save but could do with a fail safe backup plan.
  • moatmeister
    moatmeister Posts: 329 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    ..............bump!
  • nikshadio
    nikshadio Posts: 2 Newbie
    Hi
    I am looking to purchase a home I am would like to borrow about 5k to help towards the deposit will that affect my loan application. I have no other credit commitments, I do check my credit history on experin which shows that credit history is excellent. How will applying for the loan before the mortgagate affects my mortgage application?
  • nikshadio
    nikshadio Posts: 2 Newbie
    Hi
    I am looking to buy a house and is thinking of taking out a loan for around 5k, will that affects my mortgage application?
  • blueberrypie
    blueberrypie Posts: 2,400 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Name Dropper
    Mortgage providers won't accept money you've borrowed as your deposit. No go, I'm afraid.
This discussion has been closed.
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