Should I get a loan now or wait? - Our house is on the market

ghost5

I currently have debts of £14,500 across 3 different lenders / credit cards.  The repayments are manageable but not ideal and I have been working hard to bring everything in line.  Apart from wishing to win the lottery and paying it all of I am happy with the way things are at the moment with my debts.

We have put our house on the market and the money raised from this will be used as a deposit for a new house.  We have been accepted in principle for a mortgage that is far more than we will need, so everything is good there.  I do not know if our house will sell quickly.  It has had 1 viewing in 6 weeks so it could go tomorrow or we could still be in this house in 6 months time.  Both of our credit scores are excellent, despite my debts.

With the recent interest rate drop I have been looking at loans.  I could get a loan right now which will save me £80 / month and also pay off the debts 4 months earlier.  Should I continue looking into this or with us wanting to take out a new mortgage should I hold fire, wait until we have moved house and then start looking again.  The worst thing that I can do is affect my credit rating negativity now, our house selling tomorrow and we then can't get the mortgage that we want but with the low interest rates at the moment it seems like a good time to look into something like this.

Many thanks,


Edit:  I suppose the question that I am asking is:  If I take out 1 loan now and pay off 3 other debtors is there a possibility that this can affect my credit rating / chances of getting a mortgage in the near future?
Thanks,

[Deleted User]

Never take out credit when you're hoping to get a mortgage.

Also, you probably won't be able to get a loan at any sort of decent rate with that level of debt.  Your high credit scores are of no use to you when applying for credit.

Go to the DFW boards and get advice on cutting costs and repaying faster.

ghost5

Deleted_User said:

Never take out credit when you're hoping to get a mortgage.

Thank you.  Your first line is what I thought and I will now hold off until we have our new house.

enthusiasticsaver

I would not apply for new credit if you are going to need a mortgage within the next 6 months.  Just concentrate on paying down the debt as much as possible before applying. 

Crumble2018

Deleted_User said:

Also, you probably won't be able to get a loan at any sort of decent rate with that level of debt.  Your high credit scores are of no use to you when applying for credit.

That's rubbish - we have a £20,000 loan at a rate of less than 3%.

foxy-stoat

Crumble2018 said:

Deleted_User said:

Also, you probably won't be able to get a loan at any sort of decent rate with that level of debt.  Your high credit scores are of no use to you when applying for credit.

That's rubbish - we have a £20,000 loan at a rate of less than 3%.

Thats great, nothing to do with the OP's situation though is it.  They are £14,500 in the red at the moment so if they want a loan to cover all that then their income needs to be high enough to service £29,000 of debt to pass the lenders affordability.

You may have a £20,000 loan of less than 3% but did you have £20,000 of debt when you applied?

Crumble2018

foxy-stoat said:

Crumble2018 said:

Deleted_User said:

Also, you probably won't be able to get a loan at any sort of decent rate with that level of debt.  Your high credit scores are of no use to you when applying for credit.

That's rubbish - we have a £20,000 loan at a rate of less than 3%.

Thats great, nothing to do with the OP's situation though is it.  They are £14,500 in the red at the moment so if they want a loan to cover all that then their income needs to be high enough to service £29,000 of debt to pass the lenders affordability.

You may have a £20,000 loan of less than 3% but did you have £20,000 of debt when you applied?

I was merely replying to the comment saying they wouldn't get a good loan rate because of the amount of debt. I wasn't saying that the OP should apply for a loan now.

And Yes - we had around £40,000 of debt in loans and car finance when we got our mortgage - obviously we didn't get offered as much though.