Loan when just got mortgage

Guru86

Good Morning,


I am currently in the process of buying a house worth £160000 with a £8000 deposit. The house is in a right state and needs work doing to it but feel due to area once done it will be worth more than we purchased for.


To do the work I am going to need to take out a £20000 personal loan. £7000 of this will be my current loan then the rest for the work.


I have a good credit history never missed a payment, credit since 18 etc. As has my wife who we will be doing a joint application.


My question is, due to just taking out the mortgage will I get a loan? Or due to taking on new credit (mortgage) and not living at address long enough will this reject it?


My loan is currently with FD who I bank with so was thinking of approaching them. Also can the bank do a search now and tell me how likely I am before I commit?


Thank You

[Deleted User]

The additional borrowing and the address issue will count against you. But it depends on many other factors. A bigger factor will be your income against what will look like 27k of borrowing.

Whatever you do, don't apply for anything until you have completed and moved in.

Foxy-Stoat_3

Wait six months, enough time to get all your addresses changed, electrol roll updated and the credit reference agencies to catch up.

Also, drop £370 a month for the 6 months into Premium Bonds, that is the cheapest £20K loan over 5 years on the meerkats. You wont get that rate but if you havent saved up £2220 by November 2015, then you cant afford the loan.

You will also only need £18,000 loan as you will have over £2000 saved already...maybe you will get used to saving and you may not have to take a out loan saving you thousands in interest payments.

No need to thank me.

Guru86

Thanks for advice however the house needs a lot of the work doing straight away so need to take the loan as soon as we move in

Foxy-Stoat_3

Guru86 wrote: »

Thanks for advice however the house needs a lot of the work doing straight away so need to take the loan as soon as we move in

I won't get a £20K loan straight away.

How much do you earn and whats your current unsecured debt?

Guru86

I earn around 33300 and the other half 15000.

Only debt is the 7g we have left on personal loan which would consolidate into new loan. May be I only take 16000 out and do rest of work the following year.

river_bank

You will also only need £18,000 loan as you will have over £2000 saved already...maybe you will get used to saving and you may not have to take a out loan saving you thousands in interest payments.

Foxy-Stoat_3

Guru86 wrote: »

Thanks for advice however the house needs a lot of the work doing straight away so need to take the loan as soon as we move in

Does this £160,000 house you have just bought on a 95% mortgage really NEED £13,000 spending on it in order for you and your family to live in it?

Or do you WANT to decorate it to your taste immediately?

I suggest you maybe borrow a little and do some bits and save to get the rest finished.

pmartin86

Just out of curiosity, if the hose requires that much work on it, have you checked if its mortgagable? If it's unimhabitable, then your chances of getting a 95% rate are slim to none.

Guru86

It needs new bathroom, old back boiler changed to combi, rewire, windows replacing and eventually new kitchen.

Have family and friends in trades so can do most cheaper that's why need 13. It is mortgageable just needs dragging into modern times.

lovinituk

Foxy-Stoat wrote: »

You will also only need £18,000 loan as you will have over £2000 saved already...maybe you will get used to saving and you may not have to take a out loan saving you thousands in interest payments.

river_bank wrote: »

You will also only need £18,000 loan as you will have over £2000 saved already...maybe you will get used to saving and you may not have to take a out loan saving you thousands in interest payments.

There's an echo in here!! Say hi to the spammer everyone