Loan after mortgage

kissanpoika

Hi,

I'm about to buy a house but in doing so I'm having to borrow 3k off my parents as I'm a bit short on the fees and deposit. I've borrowed this off them on the understanding that once the purchase has gone through I will take out a loan to pay them back as I couldn't have a loan affecting the amount I could borrow for my mortgage. I also want to borrow a further 5k to buy furniture etc as I have absolutely nothing at the moment. How soon can I apply for the loan in or after the house buying process? If I went through my bank would that be easier as the new address won't bother them or will other lenders be alright with that?

My credit rating should be alright, I earn X a year and have no outstanding bank loans and don't use credit cards. Any suggestions the best way to go about getting this with a decent interest rate but soon after the move?

Thanks!

Robert_Sterling_3

Not using credit cards might have a negative rather than a positive impact on your credit rating.

kissanpoika

Hmm, in that case maybe should I apply for it before I move then but after we've exchanged contracts? That way it will still go through my current address and so my credit rating won't take a knock from being at a new address and having no history there. As I'm a first time buyer though, could I legally answer yes to the question "Are you a home owner" at that stage. I think I read somewhere that is meant to help... could be wrong though!

nadnad

i think that as long as you have a good rating and good history from your old address it should be alright - we never had any problems when we moved to our new house - because on all application forms they look for your address history for at least 3 years usually. so you should be ok to apply when you are in your new house.