Loan after mortgage

jay459

I will be applying for a sainsburys loan as soon as i get my mortgage. I had to go co-ownership as I was 10k short. And it really turns out co-ownership won't let you keep any money, only 5k in savings. So it turns out that my monthly payment is much less but I have basically no money left. But it means I am in a financial position to take on a loan as another stipulation was to clear debts so I'm also debt free.

I will be applying with sainsburys, how much will they give me on a 20k salary, don't want to ask for too much and it be turned down.

Also at what point is it safe to apply for a loan, my mortgage application went in last week...

Tixy

Do not apply for any new loan until after completion.

Applying for new credit before completion could mean that your mortgage lender revokes their offer.

Once you have completed on the property then how much a particular lender will agree to lend to you will depend on their assessment of your finances and credit file.

On a £20k salary if you had no other debts you may be able to borrow around £10k. But having just taken on the financial commitment of a mortgage this could well mean a lender is likely to consider you a higher risk and so might affect how much they'd be willing to lend to you.

jay459

So when the bank comes back and says yes am I safe to apply for the loan. What is the mortgage process, do they complete the survey then give an answer.

I sent my application off last week and mortgage advisor then it could be 3 weeks before I get an answer

Thrugelmir

jay459 wrote: »

So when the bank comes back and says yes am I safe to apply for the loan.

The lender may perform a further credit check any time until completion. Advice therefore is not to apply for any form of further credit while application is in progress.

DandelionPatrol

jay459 wrote: »

1. I will be applying for a sainsburys loan as soon as i get my mortgage.
2. I had to go co-ownership as I was 10k short.
3. And it really turns out co-ownership won't let you keep any money, only 5k in savings.
4. So it turns out that my monthly payment is much less but I have basically no money left.
5. But it means I am in a financial position to take on a loan as another stipulation was to clear debts so I'm also debt free.
6. I will be applying with sainsburys, how much will they give me on a 20k salary, don't want to ask for too much and it be turned down.

This raises some issues

1. OK
2. OK
3. ??? Is that at the point of purchase? Or is that while you are in the property?
4. So you are well able to save.
5. Are you one of those people who does not feel well if you don't have a loan? Or do you want the loan for a purpose - eg to furnish?
6. How much do you want? Work out how much you want to borrow and assessing your chances of getting that specific amount.

At the end of the day always borrowing to the max and spending it ultimately cuts down your choices in life. It seems to have happened already, because debt has left you 10K short for full ownership.

There is no end of a lot of 2nd hand stuff out there. You would do well now to take advantage of your debt free status and start by making do and using your free income to save for the things you want to buy

dgtazzman

Excellent advertising, also, taking out a payday loan before completion is practically begging the mortgage lender to retract their offer...

chanz4

kazanovabg wrote: »

Why not take a quick cash loan I did so to cover some bills and I am pleased from here JustRite Funding

speak to your PR team, your add is very poor

Tixy

jay459 wrote: »

So when the bank comes back and says yes am I safe to apply for the loan. What is the mortgage process, do they complete the survey then give an answer.

I sent my application off last week and mortgage advisor then it could be 3 weeks before I get an answer

It is advisable not to apply for any new credit until you have completed on the purchase of the house. That is until after you actually have the keys to the house.

jay459

my mortgage is approved and surveyor has confirmed asking price ok. Offer has been posted out to me and will be with solicitor this week.

Can anyone advise me on how to approach this loan i will soon apply for. Should i apply for it in my current situation, living with parents but what purpose will i put down. Can hardly put down home improvement if I'm living with parents.

If i put down homeowner can they tell if I'm actually a home owner as technically I'm not just yet...

Gaz83

Everyone who's replied to you on this thread has told you not to do it until after completion.

Why are you so set on ignoring this advice?

zappahey

jay459 wrote: »

Can anyone advise me on how to approach this loan i will soon apply for. Should i apply for it in my current situation, living with parents but what purpose will i put down. Can hardly put down home improvement if I'm living with parents.

Without exception you have been advised that you shouldn't apply for a loan before completion, i.e. don't do anything until you have the house keys in your hand.