Taking a loan immediately after mortgage completion

catjacob

Hello,


I want to buy house with a mortgage of £190k which is the max loan I can take from a lender. However, this mortgage together with my saving are just enough to cover the costs of purchasing the house, solicitor’s fee, moving home… I still need extra cash (around £4500) to cover the Stamp Duty Fee.


I had a look at some threads here, it may be possible to take a loan after mortgage completion. However, whether my name is linked to the new home address is crucial when lenders check my details on the electoral roll. So, when should I inform the local council for updating my address, say, on the date of contracts exchanged?


Is £4500 a big loan if I already took a mortgage of £190k?


Also, taking £4500 load and repaying in 15 - 18 months is very bad to my credit score???

amfan

I'm afraid I'm not going to answer regarding how easy it will or won't be for you to get a loan. Instead I'm going to ask if you've really thought through all the costs involved in running a house? If you're maxing yourself out and don't even have enough saved to complete the entire house purchase what are you going to do when you move in and find the boilers packed in, or there's a roof leak, or you lose your job and find yourself with zero savings and a mortgage to pay?

catjacob

I think I can manage the running costs of the house. I analyse my income vs expenditure, and I will be able to save at least 300 pounds a months after paying mortgage, insurance, groceries, bills .....

[Deleted User]

catjacob wrote: »

Hello,


Is £4500 a big loan if I already took a mortgage of £190k?


Also, taking £4500 load and repaying in 15 - 18 months is very bad to my credit score???

It's big if you can't support it.

You have no credit score. And if you did, logic would suggest that showing you can pay back debts quickly wouldn't harm it.

Pixie5740

Taking a loan out after completion isn't going to help you. As you require a mortgage you need to give the SDLT money to your solicitor before you can complete the purchase

Candyapple

Rather than a loan, have you looked at money transfer cards? MBNA, Virgin and Tesco are known for giving high limits.......

https://creditcards.moneysavingexpert.com/?money-transfers&_ga=2.137076342.775762143.1499333819-1245961487.1499333819

catjacob

Candyapple wrote: »

Rather than a loan, have you looked at money transfer cards? MBNA, Virgin and Tesco are known for giving high limits.......

No heard before....But who are the providers? I mean who issue balance transfer credit cards?

leespot

If you can't afford the stamp duty you're in over your head. Sorry if that isn't what you need to hear, but it is true.

Candyapple

catjacob wrote: »

No heard before....But who are the providers? I mean who issue balance transfer credit cards?

What?

Did you even read what I wrote? You don't need a balance transfer card you need a money transfer card.

More info here:
http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

There are loads of providers who issue money transfer cards, just use the eligibility checker I posted before and once you've entered your details it will show you them.

glentoran99

Not a good idea to apply for a credit card just before getting a mortgage

catjacob

Candyapple wrote: »

What?

Did you even read what I wrote? You don't need a balance transfer card you need a money transfer card.

More info here:


There are loads of providers who issue money transfer cards, just use the eligibility checker I posted before and once you've entered your details it will show you them.

Yes, I didn't know there is something called money transfer card. Actually, I haven't read my credit report until last month.