Personal loan following new mortgage

jjbrw1

Hi there,
We have recently purchased a house. The first mortgage payment is about to be taken out.
The house needs a lot of improvement so we need to take a loan out over 5 years for about £10k to get all the work complete.
My question is how long should we wait to apply for a loan due to the new mortgage and obviously our credit rating being affected.
We have no other loans and a small amount on our credit card.
Just concerned that with the new address , if we apply too early and get rejected, it will take a long time before we could apply again.
Any advice welcomed?
Thanks

Tixy

How recent was your purchase?

I would wait until you are on the electoral roll at the new house and this is reflected on your credit files for all 3 credit reference agencies (which typically takes around a month from when the council tells you that you are on the roll).

I would also wait until your current credit providers/bank etc have updated your credit file with your new address (usually the next time they send a monthly update after you inform them).

jjbrw1

We moved 2 weeks ago so very recent.
I have updated the new address with all those that hold credit files and have contacted electoral register office to try and get ahead of the game and obviously be able to vote.
I will wait a month and check my credit file, if it shows the new address, I may take my chances.
Thanks

pmartin86

I did something simular to you, I was advised at the time (by the bank) to wait around 6 months, I did, and was accepted.

Paul

Foxy-Stoat_3

So the cheapest loan on the meerkats for £10k over 5 years is around £190 a month, you may or may not be offered the cheapest rate though.

I would buy £190 worth of Premium Bonds online for the next 6 months, by then assuming you dont win you will have £1140 SAVED. If you struggle to save this every month then you cant afford a loan.

Ask yourself in 6 months time do you really need to drop £10,000 into your new house in one go or can you do whatever work you want to do over time, room by room. You may end up saving a thousand or 2.

I would say take a loan out for a kitchen as this is the most expensive room to get done and you will want it finished as quick as possible.

Good lucks.

Kittycat1981

We was also advised to wait 6 months by our bank before applying for a loan. 6 months soon passes.