Mortgage approved now a loan?

MNM2903

Hi

Just wondering if any one can offer any guidance. We recently purchased a 4 bed house for 182k. It's dated and needs a new bathroom, kitchen & carpets throughout etc. We have got the deposit from the sale of our home and some savings which we have.

We are going to need to spend around 30k getting work done, walls moved etc and we're wondering if we can apply for the loan for this while we are waiting for our sale and purchase to complete which is due between 15th - 29th September. Obviously if we don't spend the full 30k we would just pay anything left over straight off the loan.

Were looking to do this as we have the affordability to pay the loan and mortgage but not enough equity to draw anything from the house as the deposit from ours covers the 10% needed for the new house, we also have a 2 year old so don't want them living on a building site for too long, hence getting a loan to go in and just get it all done.

Were not sure if we wait until we're in/complete, or can we start this process now, would it have any impact on our mortgage offer?

Also who are the best lenders to go to for these types of loan as we would be looking to borrow initially over around a 10 year period.

MovingForwards

Never apply or take additional credit whilst waiting for a house purchase to complete as you risk having the mortgage offer withdrawn. Only do it when the purchase has been completed and you have the keys in your hand.

Would you be able to do a smaller deposit for your new place, larger mortgage and keep £30k back from savings/equity?

BoGoF

As above......don't go there.

Your problem however is going to get a £30k loan after taking on a new mortgage. Are you sure you have thought ths purchase through properly.

AnotherJoe

Having your mortgage offer withdrawn before exchange would be bad, between exchange and completion would be catastrophic.

So dont do it, wait until you're in.

MNM2903

MovingForwards wrote: »

Never apply or take additional credit whilst waiting for a house purchase to complete as you risk having the mortgage offer withdrawn. Only do it when the purchase has been completed and you have the keys in your hand.

Would you be able to do a smaller deposit for your new place, larger mortgage and keep £30k back from savings/equity?

Unfortunately not, we need to put down 10% for the mortgage were getting. We were planning on moving next year after we had saved a little more but when this house came up we wanted it. We will have to take time getting it how we want it but it's a worthwhile investment.

MNM2903

AnotherJoe wrote: »

Having your mortgage offer withdrawn before exchange would be bad, between exchange and completion would be catastrophic.

So dont do it, wait until you're in.

Noted . Thats what we're going to do. Might be that we can't get the loan right away and will have to just use wages and the savings we have to do what we can 😁

MNM2903

BoGoF wrote: »

As above......don't go there.

Your problem however is going to get a £30k loan after taking on a new mortgage. Are you sure you have thought ths purchase through properly.

To be honest it was fairly spontaneous, we ended up loving the house though. A 4 bed in the area were looking at is fetching around 250k+ and we managed to get this for 182k. It had alot of interest and was up for 200k but it does need updating, didn't want to pass it up.

If we can't get a loan then so be it, we will use savings we do have and just do it over time.

We could have moved in to a 4 bed new build home in a nice area with everything done, it would have cost us around 280k, with 5% deposit but we absolutely hate the thought of another new build 🤮, it would have been the easy option though.

MNM2903

Just an FYI - the loan is more of a want than a need. The house is clean and solid. Surveys have came back fine, electrics are all good and it's got a new boiler/central heating system in. Here's a link if anyone's curious https://www.rightmove.co.uk/property-for-sale/property-71414662.html

MovingForwards

Nice house, just change bits as and when you have the money; yes a few of the carpets are 'vibrant' and the bathroom fittings are an interesting colour, but it's all just personal taste.

csgohan4

you don't need to change everything when you move it. Get it cleaned and then do it room by room over the years.

BikingBud

Is plum the new avocado?