Secured Loan after Mortgage

whittakerm

Is there like a standard ratio of equity to max loan amount? 

Clive_Woody

whittakerm said:

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?

What is the value of the house?
How much deposit did you pay?
How much is your mortgage?
How much did you want to borrow as a secured loan?

whittakerm

Clive_Woody said:

whittakerm said:

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?

What is the value of the house?
How much deposit did you pay?
How much is your mortgage?
How much did you want to borrow as a secured loan?

Value: £289,995
Deposit: £14,500
Mortgage: £217,496
Loan amount: roughly £50,000 but can be flexible

whittakerm

whittakerm said:

Clive_Woody said:

whittakerm said:

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?

What is the value of the house?
How much deposit did you pay?
How much is your mortgage?
How much did you want to borrow as a secured loan?

Value: £289,995
Deposit: £14,500
Mortgage: £217,496
Loan amount: roughly £50,000 but can be flexible

*HTB equity loan: £57,999

bris

You want a 50k loan a few days after you put down a deposit of 14.5k. With a further HTB over over 57k. 

Personally I think you should just continue to live under your bridge.

HummingBird76

That is a TERRIBLE idea. Why would you even be contemplating taking borrowing such a big amount of money right after you've bought a house? You must realise how bad an idea that is? I'm afraid you'll just have to save up for the wedding and the garden can wait. 

[Deleted User]

whittakerm said:

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!

That is a LOT of debt for any home owner let alone a new one.
That level of borrowing means you'll be working a LOT of hours to repay it - all your hard earned money going straight out each month won't leave you with much disposable.

This time next year you might be even worse off if unexpected costs appear, which they do, regularly, cars, boilers, fence panels, accident laying you off work for a month ......

For gods sake think this through more.

whittakerm

Okay, sorry.

HummingBird76

@whittakerm sometimes people just need a harsh, but fair, reality check.  We've probably all been there at some point in our lives (I know I have!).  Stop borrowing for now, enjoy your new house, and start saving up for your wedding   The garden can be done in time, there is no rush.  

foxy-stoat

There will be a question on the mortgage application about current debt, if you know that your planning on borrowing £50,000 a few weeks after you move in then best let your lender know now so they can decline your mortgage for you.