Two Loan Requirement

stinabean

Hi helpful people.

We are looking into getting an extension on our house. We are also wanting new windows. Both are genuinely urgent/required this year.

I'm assuming it could be an issue if I apply for credit with the window company, and then also try to apply for a home improvement loan for the extension?

Basic answer would be to get one big loan to cover the lot - is that right?

Any other ideas welcome. I don't have the opportunity to re-mortgage as we've only been here a year and are in a fixed deal.

Christina

CliveOfIndia

stinabean said:

I'm assuming it could be an issue if I apply for credit with the window company, and then also try to apply for a home improvement loan for the extension?

Basic answer would be to get one big loan to cover the lot - is that right?

Possibly.  Making several loan applications in quick succession can cause issues - although, there is an argument to say that if you apply for them very close together, one may not appear on your credit report before you apply for the other.

Another problem may be the size of the loan.  As a very broad rule of thumb, it's generally reckoned that about £25K is the upper limit for an unsecured personal loan.  That's not a hard-and-fast rule, of course, more a general guideline.

stinabean said:

 if I apply for credit with the window company,

Which company are you looking at?  It's an oft-quoted mantra that the big names like Everest, Anglian etc. are vastly overpriced.  A local independent company can often offer much better value for money - though they're unlikely to offer finance options.

Whichever option you look into, remember that affordability will be an important factor that's taken into account by any lender.  If the total amount you're looking to borrow puts you outside of their "debt to income" guidelines, you could well find you're refused - or else accepted but with a pretty high APR.

Casskale

CliveOfIndia said:

stinabean said:

I'm assuming it could be an issue if I apply for credit with the window company, and then also try to apply for a home improvement loan for the extension?

Basic answer would be to get one big loan to cover the lot - is that right?

Possibly.  Making several loan applications in quick succession can cause issues - although, there is an argument to say that if you apply for them very close together, one may not appear on your credit report before you apply for the other.

There is no scenario where that would be true.

As soon as a search has been acknowledged by the system, a footprint is created.

The system won't process both requests at the same time (and even if they did they wouldn't be processed literally simultaneously to the same nanosecond) so as soon as one search request has been received, the second one will show the first.

CliveOfIndia

Casskale said:

CliveOfIndia said:

stinabean said:

I'm assuming it could be an issue if I apply for credit with the window company, and then also try to apply for a home improvement loan for the extension?

Basic answer would be to get one big loan to cover the lot - is that right?

Possibly.  Making several loan applications in quick succession can cause issues - although, there is an argument to say that if you apply for them very close together, one may not appear on your credit report before you apply for the other.

There is no scenario where that would be true.

As soon as a search has been acknowledged by the system, a footprint is created.

The system won't process both requests at the same time (and even if they did they wouldn't be processed literally simultaneously to the same nanosecond) so as soon as one search request has been received, the second one will show the first.

Not necessarily true, it depends on the lender's reporting cycle.  Many lenders will report to the CRAs weekly, some monthly, some with different frequencies.  So it's possible that you get a loan from Lender A on Monday, and they report to the CRAs on a Friday.  So your loan application with them won't show on your credit report until Friday, when they send their data feed over to the CRA.  It may even appear a little bit later than that, depending on when the CRAs process the data feeds they've received.

In that scenario, you could apply for a loan from Lender B on Tuesday, and they won't yet be aware of your loan from lender A.

That's why I said the first loan may not be visible to the second lender - of course none of us will ever know what a particular lender's reporting cycle is (unless you happen to work in their IT department!).

Casskale

CliveOfIndia said:

Casskale said:

CliveOfIndia said:

stinabean said:

I'm assuming it could be an issue if I apply for credit with the window company, and then also try to apply for a home improvement loan for the extension?

Basic answer would be to get one big loan to cover the lot - is that right?

Possibly.  Making several loan applications in quick succession can cause issues - although, there is an argument to say that if you apply for them very close together, one may not appear on your credit report before you apply for the other.

There is no scenario where that would be true.

As soon as a search has been acknowledged by the system, a footprint is created.

The system won't process both requests at the same time (and even if they did they wouldn't be processed literally simultaneously to the same nanosecond) so as soon as one search request has been received, the second one will show the first.

Not necessarily true, it depends on the lender's reporting cycle.  Many lenders will report to the CRAs weekly, some monthly, some with different frequencies.  So it's possible that you get a loan from Lender A on Monday, and they report to the CRAs on a Friday.  So your loan application with them won't show on your credit report until Friday, when they send their data feed over to the CRA.  It may even appear a little bit later than that, depending on when the CRAs process the data feeds they've received.

In that scenario, you could apply for a loan from Lender B on Tuesday, and they won't yet be aware of your loan from lender A.

That's why I said the first loan may not be visible to the second lender - of course none of us will ever know what a particular lender's reporting cycle is (unless you happen to work in their IT department!).

That's all irrelevant.

Lenders don't report to CRAs that they've done a check.  They ask for the data and as soon as that request is made, the CRA marks the file with the search request. All a "search" is at the end of the day is an access log for lenders.

CliveOfIndia

Casskale said:

CliveOfIndia said:

Casskale said:

CliveOfIndia said:

stinabean said:

I'm assuming it could be an issue if I apply for credit with the window company, and then also try to apply for a home improvement loan for the extension?

Basic answer would be to get one big loan to cover the lot - is that right?

Possibly.  Making several loan applications in quick succession can cause issues - although, there is an argument to say that if you apply for them very close together, one may not appear on your credit report before you apply for the other.

There is no scenario where that would be true.

As soon as a search has been acknowledged by the system, a footprint is created.

The system won't process both requests at the same time (and even if they did they wouldn't be processed literally simultaneously to the same nanosecond) so as soon as one search request has been received, the second one will show the first.

Not necessarily true, it depends on the lender's reporting cycle.  Many lenders will report to the CRAs weekly, some monthly, some with different frequencies.  So it's possible that you get a loan from Lender A on Monday, and they report to the CRAs on a Friday.  So your loan application with them won't show on your credit report until Friday, when they send their data feed over to the CRA.  It may even appear a little bit later than that, depending on when the CRAs process the data feeds they've received.

In that scenario, you could apply for a loan from Lender B on Tuesday, and they won't yet be aware of your loan from lender A.

That's why I said the first loan may not be visible to the second lender - of course none of us will ever know what a particular lender's reporting cycle is (unless you happen to work in their IT department!).

That's all irrelevant.

Lenders don't report to CRAs that they've done a check.  They ask for the data and as soon as that request is made, the CRA marks the file with the search request. All a "search" is at the end of the day is an access log for lenders.

To clarify, I wasn't referring to the search process as such - I was really meaning 2 successful loan applications in quick succession.  Sorry for any confusion.

macman

You haven't stated how much you are seeking to borrow for each project?

Clive_Woody

Earnings to loan ratio is often quoted as something for consideration (some folk state that you are unlikely to be able to take a loan greater than 50% salary), alongside any other outstanding debts.

If you have a partner, could one of you take a loan each?