Mortgage and taking out a loan

HopefulBuyer

So we're waiting to hear about our mortgage, apparently all the credit stuff is absolutely fine, they're just waiting for an email from my new employer (getting sorted tomorrow) and a valuation.

Once we get our mortgage offer through (fingers crossed!!) will they do any other credit checks?

Because it's a new build, we have to carpet the entire thing which is going to cost £2700 plus do the garden (no clue what that will cost) and we're just going to be able to save enough for legal fees, stamp duty etc before the move (hoping to be around mid april depending on the habitation certificate) We were thinking of possibly taking out a loan, it will pay off a few of our random monthly outgoings (HMRC debt, a couch and an electricity bill from years ago) plus leave enough for all the carpets and do something decent with the garden. It won't affect affordability because the monthly loan payment will equal the amount of outgoings we would be paying off.

Does this sound like something that can be done, or will I have to start selling organs to pay for carpet??:rotfl:

MovingForwards

Wait until the keys are in your hand before doing any loan applications, or other financial applications, you don't want them to pull the offer.

Buy a few rugs, buy second hand furniture, look on Facebook / gumtree for free things.

The garden can wait.

NewShadow

HopefulBuyer wrote: »

Once we get our mortgage offer through (fingers crossed!!) will they do any other credit checks?

I've been advised by my broker to avoid anything which results in a search because it's been known for a lender to do a final credit check between approving the application and releasing the funds - I assume it depends on how long there is between those things happening and how close you were to being approved/rejected for the amount you're asking for.

Thrugelmir

HopefulBuyer wrote: »

It won't affect affordability because the monthly loan payment will equal the amount of outgoings we would be paying off.

Out of caution your lender will assume the opposite. Buy some slippers until the purchase is completed.

Turfing the garden can be done at later date. No rush. Personally I would advise digging it over and removing the buried building materials. Your lawn will be better for it in the longer term. Likewise a patio isn't an immediate necessity.

Mortgage_Adviser

DONT DO THIS!!!
NEVER TAKE OUT ANY BORROWING UNTIL THE MONEY HAS CHANGED HANDS AND THE HOUSE IS OFFICIALLY YOURS!
IT MAY COST YOU YOUR HOME!
In the worst case ask family/friends to lend you the money and repay them with the loan once the purchase is completed.

Neutrinno

Wait until you complete, you don't want to jepordise anything.

csgohan4

Take out further borrowing at your own risk


https://forums.moneysavingexpert.com/discussion/5930981/help-mortgage-offer-withdrawn-after-exchange

foxy-stoat

You can take out a loan if you want, as long as the mortgage lender has been made aware that you planned this extra borrowing and the numbers work.

I would of thought that you would of negotiated flooring and grass before buying though.

HopefulBuyer

Ok so general consensus is to leave it until we move in! We've already ordered the carpets, if we can't save the money before we're due to pay, I'll ask my sister if she can help us out. The garden will stay a mud hole for now!!!