Do I get a loan if I'm hoping to buy soon??!!!

CSmith84

Hi all,

My husband worked until very recently as a driving instructor, and we have used his car for the past few years as our only car, however the franchise is very expensive. We are due to have our first baby in the next 6 weeks and he has just found a full time job with a guarenteed income and some stability for the first time since I have known him which I am ecstatic about and has come right in the nick of time for the babys arrival!! The problem is we still live with my parents, and are saving for a house deposit which we almost have together, but with the baby being due so soon and with maternity pay at my company not being great my folks have agreed to let the 3 of us stay until the new year when i go back to work, with the understanding that once I'm back on full pay we start looking at houses, which is fine and I am very grateful. HOWEVER my hubby wants to carry on the driving instructing part time to give us a little extra spending money, but if we keep the current car we would gain no extra spends as all the lessons would just cover his franchise, and I would never see my husband, so we really need a new car with lower monthly payments, we cant get a banger to get us through as he would really struggle to get any students to want to do lessons with him, so were going to need something semi decent. We can afford the repayments on a personal loan to buy a car, i budget like crazy and i have no worries with regards to repayments, however am i going to be refused a mortgage if i took out a personal loan now?! Were in the Nationwide save to buy scheme so we only have a 5% deposit to put down so i am assuming my credit score will need to be near perfect to get this?! I really really dont want to have to rent come the new year because weve been refused, nor do i want to stay with my parents any longer than i have too, as wonderful as they are we are newly weds with our first baby coming and we want to settle down and be our own family as soon as were financially ready!! But we do need a car and I just dont know what to do for best!!

Any advise would be appreciated, we have no other debts but my husband has had a low credit score in the past and were working on building that up as much as possible over the rest of this year!!

Thank you all in advance!!

Wh05apk

Any payments on the loan will be deducted from your income, reducing the potential mortgage quite dramatically, will working part time as a diving instructor, really cover the additional loan repayments/insurance etc?

ACG

Even if its comfortable, i would avoid taking out extra borrowing or doing credit searches if your intending on applying for a mortgage wherever possible.

R_P_W

No! Getting a 95% mortgage is going to be tough enough without having a loan in the background as well.

CSmith84

Well that's settled, need to think of alternatives then! Thank you! Xx