Loan After Mortgage Application

corkyefes

Good Afternoon,


I was wondering if anybody has experienced the same predicament as me or could give me some advice.


I'm in the process of buying my own house and want to get funds for house renovations.


I've had my mortgage offer come through from the lender and I have just instructed my solicitor to proceed (no contracts drawn up as of yet, just currently carrying out the relevant searches).


I was looking at applying for a bigger loan (extending an existing) with my existing lender.
The new loan amount would be used to pay off my existing loan (with the same lender), my small credit card and leave me with a good amount for house renovations.


All I'm worried about is, would applying for this bigger/extension loan affect my mortgage in any way, taking into consideration the stage my mortgage is in?


The payment of the new/extension loan would only be £60 a month more, however I would be borrowing double of my existing loan


Would my mortgage be affected if the loan was accepted or declined? .... have a fantastic credit rating aswell.


The reason I ask this and also why I cannot wait until my mortgage is signed and sealed, is that the lender has only got this offer on until Wednesday.


Hope you all can help.

Paully232000

I look at the mortgage board quite a bit, and the general consensus of opinion seems to be not to apply for any forms of credit until you have completed on the house purchase and have the money from the mortgage company. The mortgage company can check your credit file any time up to release of funds and can change their mind based on new information.

poppasmurf_bewdley

corkyefes wrote: »

Good Afternoon,


I was wondering if anybody has experienced the same predicament as me or could give me some advice.


I'm in the process of buying my own house and want to get funds for house renovations.


I've had my mortgage offer come through from the lender and I have just instructed my solicitor to proceed (no contracts drawn up as of yet, just currently carrying out the relevant searches).


I was looking at applying for a bigger loan (extending an existing) with my existing lender.
The new loan amount would be used to pay off my existing loan (with the same lender), my small credit card and leave me with a good amount for house renovations.


All I'm worried about is, would applying for this bigger/extension loan affect my mortgage in any way, taking into consideration the stage my mortgage is in?


The payment of the new/extension loan would only be £60 a month more, however I would be borrowing double of my existing loan (originally borrowed £7.5k 9 months ago and now looking at borrowing £15k).


Would my mortgage be affected if the loan was accepted or declined? .... have a fantastic credit rating aswell.


The reason I ask this and also why I cannot wait until my mortgage is signed and sealed, is that the lender has only got this offer on until Wednesday.


Hope you all can help.

Where are you based, as 11.01am in Britain is not in the afternoon?

corkyefes

.............

corkyefes

poppasmurf_bewdley wrote: »

Where are you based, as 11.01am in Britain is not in the afternoon?

Thank you for that really helpful post with regards to my situation.

DCFC79

Your credit rating maybe fantastic but it doesn't in anyway mean you have a better chnace of getting a loan.

poppasmurf_bewdley

corkyefes wrote: »

Thank you for that really helpful post with regards to my situation.

Nice sarcastic little reply there!

I asked the question because many people have posted on these forums not realising we are in England! Someone posting from, say, India and writing 'good afternoon' when the clock on the forum shows it's mid-morning is a good indication of such a situation.

So I repeat my question. Where are you based? If you are in India or Bankok or Rome the answers to your questions will be entirely different than if you lived here.

Or maybe you were just too lazy to look at the clock!