Applying for mortgage and personal loan

vlv17

Hello! Hoping someone can help. We already have a mortgage and are currently in the process of porting our mortgage over to buy a new house with the same lender. We are yet to apply for the new mortgage as are waiting to offer on a house. 

My PCP car finance is also due up this month so was planning to get a personal loan to cover this, worried about the impact this will have on mortgage application - not worried about affordability more the mark on credit file.  Worried about whether to apply for mortgage first and hope this goes through prior to applying for bank loan but then conscious this may be rejected. 

TIA

 

SuseOrm

I was told that if you apply for any credit your score drops for six months but saying that I didn’t stop me getting the mortgage.  

MaryNB

It's generally advisable not to make any credit applications in the six months or so leading up to your mortgage application, and certainly not between the application and completion. 

My colleague did it the other way around - remortgage and then a personal loan, both with the same bank. The total repayments (mortgage + loan) were less than his mortgage repayments prior to the remortgage and he had no issues with his credit report. Bank didn't care, wouldn't give him the loan so close to remortgaging. Told him to apply again after about 6 months.

SuseOrm said:

I was told that if you apply for any credit your score drops for six months but saying that I didn’t stop me getting the mortgage.  

If you're referring to the score you see on your credit reports that isn't the issue. Lenders don't see it and therefore don't use it. The hard search on the file could be an issue and could impact on the scoring the bank does (the score that customers don't see).