Mortgage Application and Personal Loan

norsefox

Just a quick question here.

I'm 25 and looking to buy a property this summer with my girlfriend.

We currently have a 10% deposit together, ~£15k and qualify for Nationwide's 5% first home owners mortgage should we wish to apply.

Our joint salary is ~£55k to ~£60k (no CC debt, currently renting - student loan debt only)

I'm in the market for a car and qualify for a personal loan with Nationwide of their lowest 4.9% APR rate. When should I look at applying formally for the loan, before mortgage application or after? and if so (either way) how much time should there be between the applications? (at this point it looks like both loan and mortgage would be with Nationwide)

I've been saving everything I have for 12 months now and now the deposit is together I'm looking to get my first car - but I'm wary of slowing down or preventing our mortgage application for a few months with a badly timed loan, and that wouldn't go down well with my other half who's had her half of the deposit far longer than me!

Any advice on the above would be greatly appreciated.

Wozza85

Definitely after mortgage! Having a personal loan could impact how much they are willing to lend you for the house. The house is the bigger priority so do that first then look at loans for the car.

norsefox

I know it would affect affordability. However I should note that we'd be applying for a mortgage of no more than £150k with a minimum of £15k deposit on a joint salary of ~£55k-£60k.

How long is it realistic to wait after getting the mortgage?

amnblog

The day after your mortgage completes is fine.

On no account go applying for a new car now. The loan could be enough to dip you under the pass rate for the credit score.

You could end up with one car, zero mortgage, zero property, zero girlfriend.

norsefox

amnblog wrote: »

The day after your mortgage completes is fine.

On no account go applying for a new car now. The loan could be enough to dip you under the pass rate for the credit score.

You could end up with one car, zero mortgage, zero property, zero girlfriend.

Ha ha. No worries. I'll look to do it after then. Thanks