Will a loan affect my remortgage

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Hi All

Bought a new car recently with savings 18k, now I would like to get a loan for this to put the money back into my account. But debating to do so or not.
reason being I have 10 months left on my current mortgage deal, and don’t want to affect anything.
Do you think this would be a problem or is it looked at on affordability?

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  • fimacdoodle
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    My remortgages have been pain free, and any affordability questions have been scant by a broker. As long as your payment history is good, and you have decent % wedge to put down as a LTV, they did not seem bothered at all.......
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    edited 16 October 2021 at 6:51PM
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    It'll be factored in by a lender if remortgaging.

    But regardless, getting a loan to put into savings is a terrible idea. Just out the amount you would be wasting repaying a loan each month directly into your savings.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
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    edited 17 October 2021 at 10:14AM
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    Hi All

    Bought a new car recently with savings 18k, now I would like to get a loan for this to put the money back into my account. But debating to do so or not.
    reason being I have 10 months left on my current mortgage deal, and don’t want to affect anything.
    Do you think this would be a problem or is it looked at on affordability?
    But why ?

    paying interest on a loan just so you can have that money in your account isn't a good idea.

    If you wanted some money left over then don't spend £18k on a car.

    But yes it has the potential to affect the mortgage, how much is anyones guess as its 9/10 months time your looking at remortgaging so the amount to be paid back for the loan will be less.
  • Sncjw
    Sncjw Posts: 3,511 Forumite
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    It an absolutely nuts thing to do. 

    I would be ahooy to know that I have used my savings for something I needed albeit it's more than whay I would spend rather than paying money out my account and spending even more due to interest. 

    It also gives breathing space on a bad month as with savings you can choose to put in what you want into it that month but with a loan you have to put that money out. 

    Also it would be paying out double the amount for somethings that's 18k as you used your savings but then you need to pay more money out. I would rather build up savings again so I know my money will go on two things or more rather than one thing if you got a loan.

    It also causes the mortagae lender to reduce the offer of the mortgage by how much you have left on the loan.

    Wouldnt it be better for you to have breathing room and get lower interest potentially if you have 18k extra in your mortgage deal. 

    Honestly don't get a loan you don't need it. 
    Mortgage free wannabe 

    Actual mortgage stating amount £75,150

    Overpayment start date 1/3/23.

    Starting balance £66,565.45

    Current balance £63,787.16

  • mcpitman
    mcpitman Posts: 1,267 Forumite
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    Terrible idea as others have said.

    Just put what you would pay to a loan away each month and rebuild your savings.
    Life isn't about the number of breaths we take, but the moments that take our breath away. Like choking....
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