Loan repayments when applying for a mortgage

spendaholic1986

Hello

I was just wondering if anyone could clarify if you need to declare a loan with less than 6 months remaining when applying for a mortgage?

I've seen on some affordability calculators that they only want you to declare loans with more than 6 or 12 months remaining and was wondering if there was a general rule?

Thanks!

HappyMJ

I would expect so...otherwise you could just take out a very large personal loan over 12 months with the purpose of refinancing other debt i.e (but you really keep the money) then let the loan run for just 1 month then apply to refinance your existing mortgage extending the mortgage term and taking out additional funds and not declare the personal loan..then once you've got your mortgage funds through you could arrange with the personal loan creditor to lengthen the time you pay the loan over. I'd either declare the loan, pay off the personal loan or wait before applying for a mortgage.