Getting a mortgage when I have a personal loan

Bubbles10

I am wondering if someone would be able to give me some advice.

My partner and i are looking to get a mortgage in the next 6 months, however I have a personal loan (through Natwest) for £17500 which he is unaware of.

Two questions .....

1. Will having this loan mean I will get rejected on a mortgage application? I have always paid on time.

2. I know that I have to declare this on the mortgage application but could I do this without my partner knowing?

We are both in full time employment. And our combined salary is £58k and we have £20k so far in savings.

I would really appreciate any feedback or advice you are able to give me.

Thanks

CLAPTON

a loan doesn't mean automatic rejection for a mortgage but it will affect their affordability calculation, so they will probably offer less than if you had no loan


i can't really see how you can avoid your partner knowing about the loan

my advice is to tell your partner about the loan today

DCFC79

Definitely tell your partner, your getting a mortgage with them so muct be serious right ? Why dont you want to tell him ?

Bubbles10

We have been saving for a couple if years now, and I just think if he knew about my loan he would go ballistic!!

I have done my best to save a decent amount for a deposit and manage to pay my loan every month, if there was anyway I could just keep paying it until it was gone then that would be perfect!

Thank you very much for your advice.

leespot

Bubbles10 wrote: »

We have been saving for a couple if years now, and I just think if he knew about my loan he would go ballistic!!

I have done my best to save a decent amount for a deposit and manage to pay my loan every month, if there was anyway I could just keep paying it until it was gone then that would be perfect!

Thank you very much for your advice.

How does he not know you have a loan?
How much is the loan balance?

You're right. He (and any normal person) would go ballistic, not to mention have serious doubts about your future together.

heartbreak_star

leespot wrote: »

How does he not know you have a loan?

My OH doesn't know about some of my debt...I think it's pretty common if you don't have a joint account.

HBS x

leespot

heartbreak_star wrote: »

My OH doesn't know about some of my debt...I think it's pretty common if you don't have a joint account.

HBS x

Wow. Surely you should both be able to be open and honest with each other about stuff like that? Is there a reason you haven't told him / her?

StuC75

Any lender will deduct such long term payments from the affordability calculation.. So it does depend on just how much you are looking to borrow and what can be comfortably paid.

Definitely need to let your partner know about this in advance - cant be having such secrets when finances will become so interlinked..

afterall you wouldn't want the advisor picking up on the Partners reaction to hearing about that at the application stage or when obtains a credit report down the line and your credit files become connected!. - some mortgage advisors will pull up credit information whilst you are in the office..

Afterall what if you were to look to have children down the line, and you weren't working for a while, would finances still stretch to cover all the commitments with a lower income..

You continuing with such payments yourself shouldn't be anyones 'problem' but wouldn't you want to know the same of your partner.. What if you were both keeping such secrets for the other? basic affordability could then be a problem...

JasX

Does this loan have much longer to run?

<2 years? 5 years? 8 years?

Tixy

Your partner will find out about this when you make the mortgage application.
Its a joint application and you will each be able to see the whole form, you cannot hide it from him at that point.

Therefore it would be far better to tell him now rather than just before you are sat in front of an advisor. At least if he knows now you can both factor it in to any likely affordability calculations to better assess what value of property/mortgage you can afford.

leespot

He might (big might) decide to use the savings you both have and pay off the loan and start afresh. How much of the £20k did you contribute?