Loan after mortgage

Bobbo1105

Hi,

We completed on our house purchase just over a week ago and now my car is giving out. I want to take out a loan to put toward a new car but I’m not sure what I need to do.
We haven’t moved into the house yet as we’re staying with my parents until we’ve got it all decorated and furniture arrives etc. and so I haven’t changed my address on anything.
For applying for the loan I’m going to have to tell them I’m a homeowner with mortgage so assume I’d have to use that address as my address and not keep it as my parents house? So should I change my address on bank accounts/electoral role and then apply for the loan? Or can I make the application with this being my address?

foxy-stoat

Yes, get everything correct before applying, you will have a better chance of getting a loan.

MallyGirl

electoral role change can take months so I wouldn't wait on that. You are going to look a bit less favourable with the mix of addresses but there really isn't anything you can do about that. Can you put off the decorating for a bit and use that money for the car?

boo_star

Bobbo1105 wrote: »

Hi,

We completed on our house purchase just over a week ago and now my car is giving out. I want to take out a loan to put toward a new car but I’m not sure what I need to do.
We haven’t moved into the house yet as we’re staying with my parents until we’ve got it all decorated and furniture arrives etc. and so I haven’t changed my address on anything.
For applying for the loan I’m going to have to tell them I’m a homeowner with mortgage so assume I’d have to use that address as my address and not keep it as my parents house? So should I change my address on bank accounts/electoral role and then apply for the loan? Or can I make the application with this being my address?

If you haven't moved in yet your current address is wherever you're living at, not wherever you've bought.

FWIW it took about 3 weeks after completion for me to move into my new house and I gave the old address (for credit applications) as that was where I was living at the time. I don't think it'll matter what you put down as your residential status as long as it's truthful. You're both living with parents and a homeowner and you obviously can't pick both.

Bobbo1105

If I spend £500 I can make my car last another 6 months (the car itself is worth about £300) but we were planning on getting a new car next year anyway so seems a better option to do it now.
I think we’ll move in next week and I’ve already asked to switch electoral roll etc now so maybe just wait it out a few weeks using the bus etc.

[Deleted User]

It makes much more financial sense to pay £500 for another 6 months motoring. Your car loan will cost a lot more than that.

Bobbo1105

My reservation is there’s no guarantee that the £500 will keep it going, 2 months ago I spent £200 fixing a different issue. I’m not too keen to keep sinking money into my dying car. A £5000 loan over 3 years would cost me about £500 in interest (my only issue is how I go about getting the loan).

MallyGirl

Bobbo1105 wrote: »

A £5000 loan over 3 years would cost me about £500 in interest

it might - or it might be a lot more depending on how you are viewed with your new affordability calculations. I would hang on with the bus if it is an option - there are always little things that crop up with a new house so save your money for those.

ratrace

You can pick up a nissan micra or a toyota yaris for about £1,500 which are very reliable and if things do go wrong parts are cheap, why spend £5k on a car and get into more debt when you dont really need to, but it upto you im not going to be the one who has pay for it,but from a mse point a view i would not get into debt for a car ive lerant my lesson the hard way, to trying to stop you from making the same mistake

Bobbo1105

Thanks for all your advice, I’ve decided to bite the bullet and go for a newer car. (The accelerator got stuck on mine the other day and scared the life out of me) I’ve had an 07 Ka since I passed my test 6 years ago and it’s time for something better. Going with HP finance with as much deposit as we can afford and plan to pay it all off ASAP. Will probably cost me a bit more overall but I can afford it and it’ll be nice to have a more comfortable car for long journeys.

benbay001

If the accelerator gets stuck, press the brake? A ka at normal revs barely has enough power to keep its self rolling along, yet alone overcome the brake's effort.


Besides, what are you going to do if the new to you £5k car gets an issue? Get a second loan?
Better the devil you know.


ETA, A bit of grease on the throttle linkage and the pedal hinge will probably free it off and the issue will never return.


Youre bound to have unexpected costs that arise with the house purchase. I sure did.