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Will my personal loan affect my application

EwenBell
EwenBell Posts: 1 Newbie
in Mortgages & endowments
Me and my partner are splitting up, we have been living together for nearly two years and I plan on buying my own house when we sell this one. I took out a personal loan after we moved into this house to do some home improvements (boiler, windows) there is £5k left to pay on the loan. Will it make a difference to my mortgage application if I try and reduce or clear the loan balance? The monthly repayments are around £140

Thanks in advance

Comments

  • Neutrinno
    Neutrinno Posts: 310 Forumite
    Seventh Anniversary 100 Posts Name Dropper Photogenic
    Yes it will affect the affordability of the loan, which differs from lender to lender. You would have to use their affordability calculators to determine if the amount you want to borrow will be affordable with the loan in place.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • David_White
    David_White Posts: 892 Forumite
    Fourth Anniversary 500 Posts Combo Breaker
    Clearing the loan before a mortgage application would only have a positive effect.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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