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Would a Personal loan affect getting a mortage
Janine9584
Posts: 2 Newbie
Hi!
If I was to get a personal loan, would that affect getting a mortage in the long run if the loan was paid off? If we used a portion of the loan for the deposit but the loan was paid off would that make any difference to applying aswell?
If I was to get a personal loan, would that affect getting a mortage in the long run if the loan was paid off? If we used a portion of the loan for the deposit but the loan was paid off would that make any difference to applying aswell?
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Comments
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A mortgage lender will take the monthly loan repayments into account when doing their affordability checks. Some lenders don't like a customer taking out two large lines of credit in a short space of time so would be best to avoid taken out the loan in the months leading up to applying for a mortgage.1
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Some lenders will not accept a deposit from a loan.Mortgage started 2020, aiming to clear 31/12/2029.0
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Some lenders will need proof of how you gained the deposit. Can I ask, if you intend to pay off the loan and then use that as a deposit, why take the loan at all if you have the money? That sounds completely illogocal.1
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Janine9584 said:Hi!
If I was to get a personal loan, would that affect getting a mortage in the long run if the loan was paid off? If we used a portion of the loan for the deposit but the loan was paid off would that make any difference to applying aswell?
You can get a personal loan, pay it off in full over time and then apply for a mortgage. This shouldn't cause any issues getting a mortgage in the future. I assume this would go in your favour with your credit score as it shows your able to pay off your credit.
You couldn't get a loan and use that for your house deposit though, lenders wouldn't accept it.
I don't understand your theory of using part of the loan for the deposit, but the loan being paid off?
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Some lenders would consider it.Belleofthebooks said:Janine9584 said:Hi!
If I was to get a personal loan, would that affect getting a mortage in the long run if the loan was paid off? If we used a portion of the loan for the deposit but the loan was paid off would that make any difference to applying aswell?
You couldn't get a loan and use that for your house deposit though, lenders wouldn't accept it.0
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