Loan before remortgage

StevenGude

Hi
We are wanting a conservatory this summer and plan was to take additional on our mortgage to pay for it. However mortgage fix rate expires in Nov and I want to change lenders so I don't want to tie myself in with additional borrowing on a min 2 year fixed term 

What would be best in this situation? Take out a £30k personal loan on a 30 year term and then just repay it when we remortgage?

Brie

I doubt you will get a £30k personal loan with that long a term.  Most seem to be under 10 years.  

StevenGude

Brie said:

I doubt you will get a £30k personal loan with that long a term.  Most seem to be under 10 years.  

Sorry yes I did look last night and most were 10 under

But same principle remains - take a 10 year loan and just repay after 6 months when mortgage funds arrive?

Phoenix72

Taking a £30k loan out 6 months before you want to re-mortgage to a new lender would generally not be advised.

retiredbanker1

Is there a guarantee that you would qualify for the extra £30k on your re- mortgage?

StevenGude

retiredbanker1 said:

Is there a guarantee that you would qualify for the extra £30k on your re- mortgage?

We are significantly under our maximum mortgage with most lenders. I guess nothing is guaranteed. But most DIPs say they will lend us around 400k. I want to increase mine from 170k current to 200k.

Phoenix72

StevenGude said:

retiredbanker1 said:

Is there a guarantee that you would qualify for the extra £30k on your re- mortgage?

We are significantly under our maximum mortgage with most lenders. I guess nothing is guaranteed. But most DIPs say they will lend us around 400k. I want to increase mine from 170k current to 200k.

Thats without a few hundred pounds repayment on a loan I assume?

StevenGude

Phoenix72 said:

StevenGude said:

retiredbanker1 said:

Is there a guarantee that you would qualify for the extra £30k on your re- mortgage?

We are significantly under our maximum mortgage with most lenders. I guess nothing is guaranteed. But most DIPs say they will lend us around 400k. I want to increase mine from 170k current to 200k.

Thats without a few hundred pounds repayment on a loan I assume?

Reduces to around 310

Nasqueron

The mortgage offer would be reduced by the amount of debt you took on, though it's widely recommended to not take out significant unsecured debt in the runup to a mortgage application, I would wait until application and borrow more, while it would be nice to have it this summer, it would be more financially prudent to wait

Nebulous2

Nasqueron said:

The mortgage offer would be reduced by the amount of debt you took on, though it's widely recommended to not take out significant unsecured debt in the runup to a mortgage application, I would wait until application and borrow more, while it would be nice to have it this summer, it would be more financially prudent to wait

That's not my experience. They calculate the mortgage offered after deducting your loan repayment from your net income. 

In my case they told me each £10k of debt reduced my potential mortgage by £40k. 

R_P_W

StevenGude said:

Hi
We are wanting a conservatory this summer and plan was to take additional on our mortgage to pay for it. However mortgage fix rate expires in Nov and I want to change lenders so I don't want to tie myself in with additional borrowing on a min 2 year fixed term 

What would be best in this situation? Take out a £30k personal loan on a 30 year term and then just repay it when we remortgage?

an expensive conservatory, even more so if you are having to finance it