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Mortgage application with outstanding loan
Craig1981
Posts: 769 Forumite
morning all
I was under the assumption that getting a mortgage you will need no outstanding debt.
i currently have a personal loan with 2 years remaining, paying £360 a month. I am saving around £200 a month for a mortgage through a LISA. after loan is cleared, i will be able to put away the £550 a month in total.
my question however is as follows: if i had to re finance my personal loan over say 5 years, bringing payments down to around 175 a month, means i can put away close to £400 a month, meaning my deposit will be around quicker, and get more out of the LISA
but, in say 2 years when having a 10% deposit, will an outstanding loan go against my application?
income is good, credit history good, have 5 credit card with about 1% utilisation (pay them off in full each month - dont need to spend on them at all
many thanks
I was under the assumption that getting a mortgage you will need no outstanding debt.
i currently have a personal loan with 2 years remaining, paying £360 a month. I am saving around £200 a month for a mortgage through a LISA. after loan is cleared, i will be able to put away the £550 a month in total.
my question however is as follows: if i had to re finance my personal loan over say 5 years, bringing payments down to around 175 a month, means i can put away close to £400 a month, meaning my deposit will be around quicker, and get more out of the LISA
but, in say 2 years when having a 10% deposit, will an outstanding loan go against my application?
income is good, credit history good, have 5 credit card with about 1% utilisation (pay them off in full each month - dont need to spend on them at all
many thanks
0
Comments
-
How much interest are you paying on this loan?
How much interest does your LISA pay?
You don't need to have no outstanding debt to be accepted for a mortgage if you have a decent deposit and income compared to the amount you are asking to borrow.0 -
loan is 4.7%
LISA is 1.1%
LISA though will get the 20% government funding (as i understand it) as first time buyer0
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