will applying for loan affect mortgage application

lola_rose_4

I am in the process of remortgaging to another lender. Should I wait until I have the offer until I apply for a loan, or is it OK to apply in the middle of the application

frepol

Depends on whether you are sailing close to the wind regarding income multiples and other debts. AFAIK, outstanding debts are normally deducted from what you can borrow on the mortgage.

If in doubt, then wait for the offer

lola_rose_4

I would have no problem paying the loan. I would be looking for a personal loan, not from remortgage provider, but from maybe cahoot. I was asking because I thought the personal loan provider would notice that a search was done only a few weeks ago for a remortgage loan, and this would go against me

Debt_Free_Chick

I was asking because I thought the personal loan provider would notice that a search was done only a few weeks ago for a remortgage loan, and this would go against me

A search, on its own, would not necessarily go against you. Lenders take account of your available credit i.e. what you could borrow on credit cards, if you spent on them up to their limits. And, as frepol noted, your actual debt.

If your actual debt + available credit is manageable - and each lender has their own criteria for this - then it shouldn't be a problem.

If you are turned down, however, beware making endless applications for other loans, as very many searches over a short period of time can send the message that you are "desperate" to borrow. And lenders tend to interpret that as if you are in trouble.

Good luck

lola_rose_4

where can I find out my available credit?
I`m not really sure that I know what you mean. I would be applying for a personal loan, not on a credit card

Robert_Sterling_3

Your available credit, in the context used above only, is the total amount you are allowed to run up without exceeding your limits on all credt cards you currently hold.  i.e.  The sum of all your credit limits.

lola_rose_4

I don`t have any credit cards. Is this a problem when applying for a personal loan

Debt_Free_Chick

I don`t have any credit cards. Is this a problem when applying for a personal loan

"Possibly" and "no".

Possibly, as you don't have a history of successfully paying off debt. If you did, it would stand you in good stead, as the lender would feel confident that you pay off the loan. This might not be an issue with some lenders, but others are fussy and will only lend to someone with a proven track record of paying back debt.

"No" because you currently have low or no debt, so at least lenders will see that you are unlikely to struggle to meet the repayments. They'll lend based on your income and your ability to afford the repayments.

In response to your very first question

Should I wait until I have the offer until I apply for a loan, or is it OK to apply in the middle of the application

I don't think it'll make much difference. Each lender - for the mortgage & the loan - will see that the other lender has requested a search on your credit file, so they know you've applied for credit already. The amount of the loan/mortgage won't appear on your file until the money has been released - and it could take a couple of weeks to get on your file.

If you're trying to time this to your advantage, I don't think you can with any certainty that you'll succeed. You should be OK, but if you get turned down it's vital that you speak to the lender and find out why. Sometimes a simple explanation can result in them changing their mind.

Good luck