New home owner loan...

rob123r1

I have just brought my first house and would like to get a loan for £5000 to help towards furnishing costs (which ideally I would like to pay back over 5 years)

I earn £35000 a year, I have no credit card debt, I do have a Student Loan (from the SLC) and a sizable interest only mortgage. In the mortgage application process I was told I had an excellent credit score and I have never missed a payment on anything.

I would like to get a decent rate on the loan, but obviously I have just moved addresses - do I need to wait a period of time before applying for the loan?

Is applying for a loan straight after buying a house likely to get turned down?

Any advice would be gratefully received.

R

Rafter

Rob,

Given you have very little unsecured debt getting a loan shouldn't be a problem, although having a very big new mortgage might scare some providers.

They all have their own 'scorecards' so whether you get accepted is really a lottery depending on whether you pick a loan company that pays more attention to current job and credit score than time at current address.

Your lack of credit payment history might be a problem too - if a company can see that you keep up payments on a credit card, they are more likely to give you a loan.

I suggest you apply to your current account bank, preferably through their online deals rather than in branch and see where that gets you. If the rate you get isn't great then maybe try one other from a best buy table.

One way of securing the best loans is to initially accept payment protection insurance and then once you have secured your loan offer, cancel the insurance.

It might also be worth looking at a 0% purchases credit card too - that way you get protection on your purchases and pay no interest for the first year possibly - although the minimum payments might be a bit higher than a 5 year loan.

Good luck

R.