Loan After Exchange, Before Completion?

zwroberts

Hi,


Help needed please.

I am about to exchange on a new build house - due to be completed at the end of May.

I need a new car so was looking to get a loan to fund it, but worried it may affect my mortgage offer if I get it before completion.

Thoughts please?

Thanks in advance.

mrginge

I recommend you don't do this.

sheilds

I totally agree with Mrginge-going for a car loan will change your circumstances,affordability and therefore could risk your mortgage offer,
Can you possibly wait until everything is finalised and you have your keys to the new property?

Malmo

This is asking for trouble and in a worst case scenario could result in the mortgage offer being withdrawn. Advice is to avoid any credit applications between exchange and completion.

csgohan4

Get a good banger. Go to the bangeromics thread

amnblog

No no no no no

HappyMJ

zwroberts wrote: »

Hi,


Help needed please.

I am about to exchange on a new build house - due to be completed at the end of May.

I need a new car so was looking to get a loan to fund it, but worried it may affect my mortgage offer if I get it before completion.

Thoughts please?

Thanks in advance.

Yes it may affect your mortgage offer.

They would need to redo the affordability calculation taking into account the car loan repayments you have to make each month. That might mean no mortgage.

Debtslayer

I see these questions quite often on here and it really baffles me:
Why would anyone risk an house purchase going through to get a loan for something trivial like sofa, car etc. Surely the house purchase completing is top priority.
Get the house first, move in and then you can do what you like!!

zwroberts

Thanks for the advice.

I'm not risking the house, hence the thread

I was unsure if NW could withdraw or change the offer once it's been given, after exchange has taken place.

Thrugelmir

zwroberts wrote: »

I was unsure if NW could withdraw or change the offer once it's been given, after exchange has taken place.

You would have failed to notify the NW of a material change in your financial circumstances. Something you agreed to do when making the application. Exchange has nothing to do with the NW. That's purely a matter between you and the vendor.

PetersJ

zwroberts wrote: »

Thanks for the advice.

I'm not risking the house, hence the thread

I was unsure if NW could withdraw or change the offer once it's been given, after exchange has taken place.

A mortgage provider can withdraw an offer at any time they like before completion.

It was happening quite a bit a few years back at the hight of the financial turmoil, putting many people in legal limbo - they had exhanged because the offer was in place at the time, but then the mortgage provider pulled the offer meaning they couldn't complete.

Fortunately those times I think are almost past for most, but if they get wind of your financial circumstances having significantly changed, they will consider withdrawl of the offer.

Another issue is if you leave it to just after completion, then you may find lenders unwilling to lend you a significant sum to buy a car as they will see you have just taken on a huge mortgage.

The suggestion to get a cheap banger for a year or two is probably what I would suggest.