Help / advice needed

CharleyCheese

Hi all

Things are moving along well for me, offer accepted on a house back in September, mortgage offer came through from Nationwide within around 2 weeks of fully applying via our broker. Looking to hopefully complete before Christmas.

However, disaster struck late last week when my car almost blew up. It's been deemed a write off by the insurers and the money they have valued it at is a pittance. My problem is that I need a car for work, I am a travelling salesman, and I can not wait 4/5 weeks before looking at aquiring an alternative car.

I have a personal, unsecured loan with HSBC that was factored into the equation when making my mortgage application. If I was to ask to borrow a bit more on this loan, given it is already in place, would this jeoporadise the mortgage or show up on a credit report? I don't want to start thinking about taking out new car loan or finance at this moment in time really but feel a bit stuck and not knowing what to do for the best. The mortgage itself is well within affordability limits anyway (pepared to lend me over £300k, I only needed £230k) but I am getting worried about any implications.

Many thanks.

ACG

It could do.

Until it completes any additional credit commitments will have an impact - 1 because it will be an additional credit search and 2 it will impact your affordability.

Can you not ask someone to put it on the credit card for you or buy something cheap and cheerful or lease a car for a month?

CharleyCheese

Thanks. I had asked my parents to loan me the money but unfortunately they are going through a period of relying on their savings as they were both recently made to retire, so I don't want to affect their plans.

Leasing is perhpas the only option, albeit an expensive one and not viable with some companies due to the mileage I will be clocking up over the next 5 weeks.

I was hoping that taking a bit more on the HSBC loan already in place would have less of an impact than applying for a new loan via a different lender but take it that is not the case?

ACG

Not really as it will still be a credit check and add to the expenditure.
It might still fit with the lender, but i would always advise against doing additional credit checks wherever possible. You could check with the lender to see what they say.

CharleyCheese

Thanks for the replies, I'll try and speak to my broker this afternoon and see what he recommends.

CharleyCheese

My broker has informed me that it's up to me what I do and there is a chance I will be credit checked again but that is unpredictable as they do not credit check everyone.

Bit confused about what to do now as the broker hasn't given me any solid advice at all really!!!

ACG

Thats because he cant.

There is a risk they will credit check you again and if they do there is a chance it will mean your mortgage is declined... there is no guarantee one way or the other. He can only tell you about the potential consequences and then its down to you to decide if its worth the risk or not.