Loan after mortgage completion

jay459

My mortgage should be through in the next few weeks. I was pondering taking a 12k loan to complete the house as its a new build.

Will my loan lender be prepared to give me 12k when I'm paying a mortgage at £420 a month on 21k salary.

I've had to clear my car loan a few others so I'm debt free at the minute and feel I'm def in a good position to pay the £420 mortgage and £180 a month on home improvement loan

Clive_Woody

Hope you don't mind me asking but if it's a new build why does it need £12K of work doing on it?

You might be better off going for a smaller loan initially to get any 'urgent' work done, then save for the rest.

chesky

What are you planning to spend this on?

jay459

There's a lot to be bought. Flooring isn't included so that's going to be dear as well as furniture, TV...etc

I'm just wondering what way I will befor future lending as this is my first mortgage.

[Deleted User]

jay459 wrote: »

I'm just wondering what way I will befor future lending as this is my first mortgage.

I'm just wondering what that means?

Gaz83

I too have no idea what that sentence means, but there's no way any reputable lender will consider lending you £12k unsecured on a £21k salary. You'd struggle to get one even without a mortgage - it's more than 50% of your salary.

Scrimp to pay for flooring and then scour Gumtree and second-hand shops for things like furniture and your TV. You'll find people giving away old-style TVs; will do you until you can afford a better one.

FireWyrm

You can get a brand new 32inch TV off Amazon for about £150, it usually even has freeview built in.

No one is going to give you £12K on your salary let alone after a mortgage too.

I'm afraid that this is one case where you will have to cut your coat according to your cloth. My first house had deck chairs because we couldnt afford a sofa and a kitchen table salvaged from the dump.

jay459

We do need something of a loan to get us started. What will be an acceptable amount lender will be prepared to give on a 21k salary paying a mortgage with no other debts.

I got finance on my car of 7k 5 years ago on a 18k salary, in round 7k, would that be more realistic?

Gaz83

jay459 wrote: »

We do need something of a loan to get us started. What will be an acceptable amount lender will be prepared to give on a 21k salary paying a mortgage with no other debts.

I got finance on my car of 7k 5 years ago on a 18k salary, in round 7k, would that be more realistic?

You didn't have a mortgage five years ago.

Look, no-one here can give you an answer. Lenders don't publicise their internal acceptance criteria, so as people don't tailor their applications to meet what a lender meets.

I was approved for a £6k loan a month after completing on my mortgage last January. But I wasn't given a headline rate (6.4% was what I ended up with, still good) and my salary is £27k with guaranteed wage rises for the next five years.

Faith177

jay459 wrote: »

We do need something of a loan to get us started. What will be an acceptable amount lender will be prepared to give on a 21k salary paying a mortgage with no other debts.

I got finance on my car of 7k 5 years ago on a 18k salary, in round 7k, would that be more realistic?

You don't need to get a loan to get started

When I brought my house everything was second hand from my mum and other members of my family

I have slowly replaced things as and when they have been needed

Use the money you're going to pay on the loan to save up puts a lot less strain on your finances

dresdendave

Please heed the advice just about everyone has given you, do not get a loan.


Ask around amongst friends, colleagues and relatives and you will be amazed how many people have spare bits of furniture they will be glad to get rid of.


Get by for a few months and then once you are used to paying your mortgage and all the other costs that come with home ownership, if you have spare money start improving furniture, carpets, white goods etc. If you don't have any spare money then you would not have been able to make loan repayments, so will realise what a lucky escape you've had.


Best of luck in your new home.