Loan/Mortgage

Smudger88

Hi,

I am currently in the process of buying a property (112k) with a 10% deposit, we expected some work to be done on the house. But the cost estimates have risen to around 9-10k.

To carry out the work we would need to take out a personal loan (8-9k). What is the likelihood of getting this loan approved?

Note: its a joint application, and both credit scores are good, no other loans finance. Joint incomes are around 3450 with mortgage repayments likely to be 550).

Or any options?

Cheers

Smudger

~Beanie~

Hard to say really but I don't think its a good idea applying for loans until your mortgage has been finalised. There are plenty of people on these boards who have done the same, applied for a loan between application and completion, and then find that their mortgage is declined at the last minute.

Smudger88

Thanks ~Beanie~,

We will be waiting till the contact is signed and we have the keys in our hands before we apply for any loans. We know we can afford it, as our fairly in depth budget planner shows. But I'm unsure if the bank will lean with us recently taking on a mortgage with a high LVR.

I have read on here that some lenders do final checks on your credit prior to contact hand over so will definitely wait, I'm just trying to look for opinions and/or options.

Tixy

You may well find it difficult to take out a new loan in the short term. Potential lenders would usually rather see a period of stability showing you are making your mortgage payments on time.
Plus to start with you won't be on the electoral roll at your new address which could also cause issues.
And you might find you have other credit checks being done when you move in (utility accounts / communications accounts etc) which again might not help.

Could you wait for a few months? After maybe 3 months in your property then your chance of being accepted for a loan should improve.

Is the £3450 your after tax income? so combined salaries a little over £50k?

If you can't wait for things to settle down a bit then I would probably try your own bank for a loan rather than an organisation you have no history with.

Smudger88

Tixy wrote: »

You may well find it difficult to take out a new loan in the short term. Potential lenders would usually rather see a period of stability showing you are making your mortgage payments on time.
Plus to start with you won't be on the electoral roll at your new address which could also cause issues.
And you might find you have other credit checks being done when you move in (utility accounts / communications accounts etc) which again might not help.

Could you wait for a few months? After maybe 3 months in your property then your chance of being accepted for a loan should improve.

Is the £3450 your after tax income? so combined salaries a little over £50k?

If you can't wait for things to settle down a bit then I would probably try your own bank for a loan rather than an organisation you have no history with.

Combined pre tax is around 42 (+ or - bonus).

I thought it would be hard to take the loan out. We could wait but that would mean living in a place that has no furniture and needs plenty of work.

Some jobs need doing as soon as we move in, such as re-wire, gutters ect plus work to the bathroom and kitchen.

I have now set up a joint account with the person I am buying with which we will be paying all bills out off and making one payment in each per month.

I have no history with them yet she does with a recent loan being paid off.

Could it be worth applying for the loan when we have the keys but before we transfer any of our details over to the new house?

DCFC79

You can sort out the furniture aspect by buying some cheap chairs eg patio chairs.

Smudger88

DCFC79 wrote: »

You can sort out the furniture aspect by buying some cheap chairs eg patio chairs.

I have a budget for furniture but I will roll the total in with the loan. Thanks though