When to apply

ksty

We are in the process of moving house, mortgaged approved just waiting for moving date now. When we get moved we would like to take out around a 10k loan for some improvements/furnishings etc but I'm unsure how long to leave it before applying for the best change of getting approved? I'm under the impression that even though our mortgage was approved with no problems if we apply for a loan too soon it may be turned down as we could look credit greedy, is this the case?
Thanks

Foxy-Stoat_3

ksty wrote: »

We are in the process of moving house, mortgaged approved just waiting for moving date now. When we get moved we would like to take out around a 10k loan for some improvements/furnishings etc but I'm unsure how long to leave it before applying for the best change of getting approved? I'm under the impression that even though our mortgage was approved with no problems if we apply for a loan too soon it may be turned down as we could look credit greedy, is this the case?
Thanks

Yes, that is the case.

Wait until you have completed and moved in, changed all your addresses and got confirmation that you are on the electoral roll at your new place then apply for the loan for the best chance.

Or just apply after you complete.

ksty

We are going to wait until we're moved, we're not in a massive rush for the money but in theory could we applying straight away, or would we be better waiting 3 months or 6 months after moving?

Foxy-Stoat_3

ksty wrote: »

We are going to wait until we're moved, we're not in a massive rush for the money but in theory could we applying straight away, or would we be better waiting 3 months or 6 months after moving?

You can apply today if you really want to, it may effect your mortgage completing so there is no reason to apply now. if you are in no rush.

ksty

what I'm asking is if I applied a week after moving would I have the same chance of being approved if I'd waited 6 months to apply? I would rather wait and be approved than rush and be turned down.

Foxy-Stoat_3

ksty wrote: »

what I'm asking is if I applied a week after moving would I have the same chance of being approved if I'd waited 6 months to apply? I would rather wait and be approved than rush and be turned down.

I don't believe so, no. As you would not be on the electoral roll for the new address. Whether that makes any difference to the lenders credit scoring is anyones guess.

ksty

Thanks but assuming I'm on the electoral roll then apply, having the new mortgage for a short amount of time, changing addresses wouldn't affect my credit rating or make lenders less likely to approve a loan?

bargainbetty

Personally, I'd wait six months, but that is just so the bank can see the mortgage is fine and no other credit issues have cropped up.

No one one here really knows the criteria that banks use for lending - it is commercially sensitive and we only have best guesses. It may well be that you find waiting for a bit allows a potential lender to see that you are managing your finances well, so you get a better offer. It also allows you to save up the monthly payment you might have paid, so you can get in the habit of not having it to live on (and you'll have some savings, so might be able to borrow less).

Good luck

Tryingtomoveout

I'd say you almost certainly need to be on the electoral role, and that can take about 3-4 months to update, depending what time of the year you notify them etc..


If you are not in a rush then it would definitely be better to wait