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    • sunfug
    • By sunfug 15th Jan 20, 4:33 PM
    • 4Posts
    • 0Thanks
    Will getting a personal loan affect mortgage application??
    • #1
    • 15th Jan 20, 4:33 PM
    Will getting a personal loan affect mortgage application?? 15th Jan 20 at 4:33 PM
    Hello Moneysavers,

    I want to take out a fixed interest loan to pay-off a hefty amount of credit card debt that I've built up on a number of cards. The thing is I'm due to remortgage in just over a month. Will applying for the personal loan affect the mortgage application? i.e. from what I understand applying for credit in quick succession is seen as a bad thing. Also though I'm keen to pay lower interest and repay in a structured way to shift the debt faster I don't want to roll it into my mortgage as I understand that can be a false economy given the length of a mortgage term. Am I correct in thinking this? Thanks in advance for your help.
Page 1
    • zx81
    • By zx81 15th Jan 20, 4:36 PM
    • 24,794 Posts
    • 27,681 Thanks
    • #2
    • 15th Jan 20, 4:36 PM
    • #2
    • 15th Jan 20, 4:36 PM
    I wouldn't apply for any new credit so close to a remortgage.
    • Bermonia
    • By Bermonia 15th Jan 20, 5:29 PM
    • 928 Posts
    • 847 Thanks
    • #3
    • 15th Jan 20, 5:29 PM
    • #3
    • 15th Jan 20, 5:29 PM
    It is impossible to give a definitive answer on this as there so many potential variables.

    If you have good equity in the property then it shouldn’t make too much of a difference, however any cards that are cleared off MUST be closed or have their limits drastically reduced, and in enough time that this will reflect on credit file (even cleared off credits carry the risk of potential debt up to their limits in addition to your new loan so would be seen as potential risk)
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