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Applying For Mortgage- Already Have 19k Personal Loan
gunner786
Posts: 278 Forumite
I am going to apply for a right to buy mortgage but i already have a £19k(originally £22k over 6 years at 18.9%) unsecured personal loan with 5 years remaining and am paying £471 month.
Will this affect my application?
Or will i be able to apply for extra £19k mortgage to pay off my personal loan?
Also are right to buy mortgages the same or do they have higher interest rates than normal mortgages?
any other hints and tips would be appreciated.
Will this affect my application?
Or will i be able to apply for extra £19k mortgage to pay off my personal loan?
Also are right to buy mortgages the same or do they have higher interest rates than normal mortgages?
any other hints and tips would be appreciated.
0
Comments
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Affordability for a mortgage will see that £471 per month deducted from what you can borrow.
For example, if you earn £20k, you can normally borrow upto £97,125 from one High Street lender over 25 years. With a loan that size, the maximum mortgage falls to £30,485.
However, if you earn £30k, the maximum falls from £150,000 to £99,655.
The difference will depend on your income and other expenses/commitments.
No, you won't be able to borrow more to pay off the loan.
RTB mortgages are "normal" mortgages and no, the rates are not higher.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Affordability for a mortgage will see that £471 per month deducted from what you can borrow.
For example, if you earn £20k, you can normally borrow upto £97,125 from one High Street lender over 25 years. With a loan that size, the maximum mortgage falls to £30,485.
However, if you earn £30k, the maximum falls from £150,000 to £99,655.
The difference will depend on your income and other expenses/commitments.
No, you won't be able to borrow more to pay off the loan.
RTB mortgages are "normal" mortgages and no, the rates are not higher.
How do you work out these affordability figures kingstreet
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I mostly use the Halifax affordability calcuator;-
http://www.halifax-intermediaries.co.uk/tools_and_calculators/mortgage_affordability_calculator/default.aspxI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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