Is it safe to apply for a personal loan before completion?

chris._4

Hi All,

Just a quick one really; any help and advice would be really greatly appreciated!

We have just (yesterday) been offered a mortgage for a new build from Nationwide (we are so pleased), we are due to exchange contracts very soon and due to complete in July :j.

We currently own a Renault Clio which we purchased on a PCP scheme. My partner mostly uses this for work and due to a change in jobs we are travelling many more miles than our contract allows us to. The excess for mileage which we will need to pay when we settle our account is increasing rapidly and we estimate that we may owe around £2000 - £3000 by the time our contract terminates. Furthermore, when we move in July, we will require a small extra car for me to commute to work. To solve this problem, we hoped to take out a small personal loan which would allow us to exchange our current car for my partner and buy a cheep run-around for me.

Reading around this subject, I believe that Nationwide may perform a further one or more credit checks before we complete on our home.

My question is; is it safe to apply for a personal loan now (before exchange of contracts or completion), or is it best to wait until after we have moved in July and take a small hit for the excess mileage on our car?

Many thanks in advance for your help and advice.

Kind Regards,

Chris

cmorrison6

chris. wrote: »

Hi All,

Just a quick one really; any help and advice would be really greatly appreciated!

We have just (yesterday) been offered a mortgage for a new build from Nationwide (we are so pleased), we are due to exchange contracts verysoon and due to complete in July :j.

We currently own a Renault Clio which we purchased on a PCP scheme. My partner mostly uses this for work and due to a change in jobs we aretravelling many more miles than our contract allows us to. The excess formileage which we will need to pay when we settle our account is increasingrapidly and we estimate that we may owe around £2000 - £3000 by the time our contract terminates. Furthermore, when we move in July, we will require a small extra car for me to commute to work. To solve this problem, we hoped to takeout a small personal loan which would allow us to exchange our current car for my partner and buy a cheep run-around for me.

Reading around this subject, I believe that Nationwide may perform a further one or more credit checks before we complete on our home.

My question is; is it safe to apply for a personal loan now (before exchange of contracts or completion), or is it best to wait until after we have moved in July and take a small hit for the excess mileage on our car?

Many thanks in advance for your help and advice.

Kind Regards,

Chris

Nationwide can do additional credit checks for auditing purposes. Obviously if they see credit that was not declared at application stage they may withdraw the offer.

If it was me, I would be waiting until I had the keys in my hands, before applying for any major sort of credit.

StuC75

Always possible for further review, especially as exchange may not be for 3 months - how long is the mortgage offer valid for? (Actual mortgage offer, not just the AIP).. check the specifics for this if you are having a long gap between exchange and completion in case the mortgage offer runs out...

kingstreet

Nationwide offers last six months, so no problem there.

Do not apply for new credit of any kind between application and completion.

chris._4

Hi,

Thanks for all of your replies! This has made the descision really very easy indeed! I'm so glad I posted the question on here now! That could have been quite a costly mistake! Thanks again (a million times over) ... you are all extremely wonderful!

Kind Regards,

Chris