Secured Loan after Mortgage

whittakerm

Hi everyone☺️

I wonder if someone could help me please... is there a general length of time as to how long you need to wait before applying for a secured loan after a mortgage offer/completion? For an example; due to complete on a house on 1st October. Application for secured loan on 5th October? Is this possible or is there like x months wait as a general rule of thumb before lenders will consider you?

[Deleted User]

If you know you will need a secured loan, it would be simpler and easier to just borrow more for the mortgage.

whittakerm

Deleted_User said:

If you know you will need a secured loan, it would be simpler and easier to just borrow more for the mortgage.

I’m a first time buyer using help to buy on a new build.

MovingForwards

What do you need a secured loan for?

Having H2B equity loan will probably prevent you from having additional loans secured on the property.

Also, to have secured loans you need equity in the property, 5% will not be enough.

[Deleted User]

How much equity will you have in the property? 

The property will lose value once you move in - will there be enough left to sustain a second charge?

whittakerm

We’d like to renovate the garden, pay for our wedding and also do a bit of debt consolidation if possible! 

MovingForwards said:

Having H2B equity loan will probably prevent you from having additional loans secured on the property.

Also, to have secured loans you need equity in the property, 5% will not be enough.

Ah right okay, is there a standard amount of equity needed?
Thanks!

whittakerm

Deleted_User said:

How much equity will you have in the property? 

The property will lose value once you move in - will there be enough left to sustain a second charge?

I guess 5%? Sorry I’m not too clued up on the equity side of things! Is that just how much we’d have paid directly to the value of the house?

[Deleted User]

That won't be anything like enough. It could take years before you have sufficient equity.

You'll need to start saving. Borrowing for a wedding is a bad idea at the best of times, but when you have existing debt and a 95% mortgage, it's mental.

Visit the DFW boards for advice on cutting costs and repaying the debt. Then you can start saving for either the garden or the wedding.

whittakerm

Deleted_User said:

That won't be anything like enough. It could take years before you have sufficient equity.

You'll need to start saving. Borrowing for a wedding is a bad idea at the best of times, but when you have existing debt and a 95% mortgage, it's mental.

Our mortgage is 75% as we’re using the help to buy equity loan.

[Deleted User]

It still adds up to 95% if you only have 5% equity.

whittakerm

Ah right, okay! Understood, thanks ☺️