Loan after mortgage?

spherewood

I've recently bought my first property - although it's not due to be completed until June. I have had to pay off existing loans in order to meet the affordability criteria; to do so, my brother-in-law has very kindly taken out a loan in his name in order for me to pay mine off. However, his credit rating is terrible and the interest rate is over 20% (!) whereas mine was less than 6% - how long after I move in will I be able to apply for a loan?

Gaz83

You can apply for a loan as soon as you've moved in. It would depend on your circumstances as to when that loan would be approved, though. I bought my first house in December (got the keys on the 20th) and applied for a small-ish personal loan (£6,000) in the middle of January to consolidate some smaller debts and to replace my car. The loan was approved with no questions asked.

I have a very good relationship with my bank though, and, without blowing my own trumpet, my credit rating is flawless. So if you have a very good credit rating and you're using a bank rather than some daft internet site, you might have more luck than you'd think in getting a loan soon after moving.

spherewood

Oh that's good, as I don't want to be paying that ridiculous amount of interest if I don't have to! I was just concerned that lenders would think I am taking on too much - which I certainly wouldn't be - and that the mortgage company wouldn't let me

Gaz83

spherewood wrote: »

Oh that's good, as I don't want to be paying that ridiculous amount of interest if I don't have to! I was just concerned that lenders would think I am taking on too much - which I certainly wouldn't be - and that the mortgage company wouldn't let me

I spoke to my bank for that very reason. The adviser said that it helped that I had paid off a sizeable chunk of debt (incurred by my wife!) over the past couple of years before I got my mortgage, so they could see that I had the funds to pay for it. I'm even trying to pay a wee bit extra to it each month to get it paid off quicker.

CLAPTON

spherewood wrote: »

Oh that's good, as I don't want to be paying that ridiculous amount of interest if I don't have to! I was just concerned that lenders would think I am taking on too much - which I certainly wouldn't be - and that the mortgage company wouldn't let me

I'm not sure what you mean by the 'the mortgage company would''t let you'
presumably you are not contemplating applying until after completion and the mortgage money has been paid?

spherewood

I won't apply until after everything has been done - I just wasn't sure if you are allowed to take out a loan if you have a mortgage.

CLAPTON

spherewood wrote: »

I won't apply until after everything has been done - I just wasn't sure if you are allowed to take out a loan if you have a mortgage.

there is no restriction on what you do after getting the mortgage; just wait until completion and the transaction is complete.