Can I get a loan soon after moving house?

KaratePigeon

Hi,
We have a good credit history, have had loans in the past which have all been paid on time etc. We moved house just before Christmas, thus increasing our borrowing on the mortgage. We kept the same mortgage provider and ported most of it with an extra mortgage for the additional borrowing.

We bought the house with the intention of getting some improvements done, which we would like to do straight away really. Want to borrow £7k, over 3 years which I have worked out the repayments and know we can afford.

The only thing is, we are not on the electoral roll yet - have just filled in the form but I think our council doesn't update it until sometime next month. Apart from that, is there anything that will count against us, with regards to having a new address, or increasing our mortage borrowing lately, or the credit searches which would have been done while getting the new mortgage?

If I was to apply now for a loan and got refused based on the above, how much will it affect any future applications?

Thanks

TrueUnitedFan

I'm no expert in this, i'm 18 and haven't even had any credit but perhaps try it at your previous address, then if your accepted, phone up quickly and change it to your new address.

Because you've moved into a new address and i'm guessing you haven't been there for more than a month, so this MIGHT stand against you.

To be on the safe side, get on the electrol roll.

somethingcorporate

Do not try at your old address, knowingly giving false information is fraud.

Is there any reason you cannot wait a couple of months to get the records straight and lessen the impact of the mortgage searches?

At the end of the day the only harm in trying is an additional search on your file, so if it goes wrong you may just need to wait an extended period of time before trying again. Your best bet is likely with the bank you have your current account with as they would have the best idea of how good you are with money. You may be able to have an informal conversation without actually applying as depending on how much you cycle through your current account and how long you have been with them you may already have a pre-approved amount they will happily lend you (or they may not!).

cajef

TrueUnitedFan wrote: »

I'm no expert in this, i'm 18 and haven't even had any credit but perhaps try it at your previous address, then if your accepted, phone up quickly and change it to your new address.

So you are advocating fraud which could effect any future applications.:eek:

somethingcorporate

cajef wrote: »

So you are advocating fraud which could effect any future applications.:eek:

Being 18 and never ever having credit before they sound like being in a prime position for offering advice on loans :eek: :rotfl:

cajef

somethingcorporate wrote: »

Being 18 and never ever having credit before they sound like being in a prime position for offering advice on loans :eek: :rotfl:

If you look at his past posts and threads he has started he has a history of posting conflicting and bad advice plus contradicting himself, this thread being a typical example.

https://forums.moneysavingexpert.com/discussion/3730169

somethingcorporate

I thought I recognised his handle, I remember reading that thread a couple of times. What a joker.

OP, sorry to go off topic.

KaratePigeon

ah don't worry I've got no intentions of doing anything fraudulent! though thanks for the advice if it was meant as helpful!

I was hoping to get the loan with my current bank anyway so that would be great if they could lend to me based on my history with them. So if I was to apply now and got a refusal it wouldn't affect my chances of trying again in a few months?

I know it might be safer to wait a while but have a few things in the house which really need sorting - if they have to wait then it's not the end of the world but there is also a 'winter offer' on something we need and it'll actually save us quite a bit of money if we can order it this month!

DCFC79

somethingcorporate wrote: »

I thought I recognised his handle, I remember reading that thread a couple of times. What a joker.

OP, sorry to go off topic.

Lol how could you forgot the handle, i know him as the "must need to improve credit history " poster lol

somethingcorporate wrote: »

Being 18 and never ever having credit before they sound like being in a prime position for offering advice on loans :eek: :rotfl:

Hes in the wrong profession, loans should be his fortay lol.

somethingcorporate

KaratePigeon wrote: »

ah don't worry I've got no intentions of doing anything fraudulent! though thanks for the advice if it was meant as helpful!

I was hoping to get the loan with my current bank anyway so that would be great if they could lend to me based on my history with them. So if I was to apply now and got a refusal it wouldn't affect my chances of trying again in a few months?

I know it might be safer to wait a while but have a few things in the house which really need sorting - if they have to wait then it's not the end of the world but there is also a 'winter offer' on something we need and it'll actually save us quite a bit of money if we can order it this month!

No, applications do not work like that (fortunately). Lenders make a search against your credit file, this is all that is recorded and not whether it was an accept / reject decision as that is made internally.

One of the things they do look at is the number / frequency of credit applications. A lot in a short space of time may look like desperation / lots of rejections elsewhere hence it will be factored in.

One more application is unlikely to make a massive impact and your bank (assuming you have a good history) is most likely to look favourably at your application.

Please try to avoid making lots if you start getting rejections. If you do, pull your credit files to check everything is ok and then wait until your mortgage application is further in the past and that you are finally on the electoral roll.