Getting loan whilst mortgage in progress

SlowDave

I'm in the process of moving house and have applied for and been accepted for a mortgage (borrowing 45k, 65% deposit). It's still going to be a month or two until everything is finalised so it's not set in stone yet.

I'm now in the situation where I want to take a smallish loan out (2.5k), in my name for a friend.

I just want to check if me taking that loan out could affect my mortgage offer? If the loan is finalised first and I then go to sign the mortgage could the mortgage provider then turn round and refuse me because my debt/credit situation has changed and is it likely?

Thanks

TrueUnitedFan

I can't see it really affecting you, mortgage wise, such a small amount anyway, but best way to know for sure is to contact the mortgage provider for your mortgage to see what they say - if taking out any further loans/credit will scupper the finalisation of your mortgage due to additonal borrowing.

Also, be prepared to get some people telling you on this thread, "Are you sure you borrow money for a friend. be prepared to lose it" blah blah blah

best of luck though!

[Deleted User]

I wouldn't risk any further borrowing until you have your mortgage. Given the small mortgage and loan amounts, it's unlikely to have an impact, but it's a restricted lending world out there these days, and lenders will always err on the side of caution if an applicant does anything that could make them nervous.

SlowDave

Thanks for the responses. Will speak to the mortgage provider before I do anything then.

Apples2

I would wait until the Mortgage is all signed off.

We had a poster recently who got a £5k loan but then turned down for a £500 iPad finance deal, it doesn't take much to increase your risk.

Taking a £2.5k loan out for a friend - well that's a whole topic on its own.

DCFC79

I wonder when TUF became such a financial whizz kid.

TrueUnitedFan

DCFC79 wrote: »

I wonder when TUF became such a financial whizz kid.

I was born one. :beer:

27col

Isn't this type of loan known as a bridging loan. It was a very common thing when we took out our mortgage many years ago.

AMILLIONDOLLARS

My advice, read the thread about lending to family and friends, then you can't say you wasn't warned!!!!

https://forums.moneysavingexpert.com/discussion/76953

AMD

scottishblondie

27col wrote: »

Isn't this type of loan known as a bridging loan. It was a very common thing when we took out our mortgage many years ago.

No, the OP wants to take out a small loan on behalf of a friend - a bridging loan is to finance a property purchase while waiting on your current property to sell.