Personal loan before getting a mortgage
Discussion
Thinking of possibily buying a flat this year, trouble is where I work (and house share) currently isn't cheap so may need to buy about 35 miles away and commute to work. Got some deposit but not enough for around near where I work, but just about enough for where I could buy.
Trouble is my current car a non-turbo Impreza is 10 years old, seen better days, and not exactly good for commuting economy wise for 70 odd miles a day. So something newer and more economical would seem wise, prob a TDi of some sort thats decent on fuel on the motorway would be best.
If I got loan for a newer car, how much impact would it have on getting a mortgage.
Trouble is my current car a non-turbo Impreza is 10 years old, seen better days, and not exactly good for commuting economy wise for 70 odd miles a day. So something newer and more economical would seem wise, prob a TDi of some sort thats decent on fuel on the motorway would be best.
If I got loan for a newer car, how much impact would it have on getting a mortgage.
guy_spyder550 said:
If I got loan for a newer car, how much impact would it have on getting a mortgage.
That depends how stretched you are on the lenders affordability calculator. If you are stretching to afford the mortgage, then the presence of a personal loan could well (in the lender's eyes, your opinion won't be taken into account) make it impossible for you to afford both loans.The lender will take the monthly payment for the loan out of your income, and then adjust the maximum amount they will lend you based on the new (lower) figure.
Run the numbers through the MoneySupermarket.com comparison website. Assume (with good credit rating) a minimum of 2% of principal per month on a five year deal.
If you and your lenders agree you can afford both, then great, go ahead and get the newer car.
If not, you need to rethink either the house or the car.
Even a sheddy 2000 Impreza should be worth ~£1,500 I'd have thought. That's your budget for a dull TDi/HDi etc. Personally I'd do that rather than get a loan, with a view to building up a contingency fund for repairs, payments to the management company on a flat, etc. anyway.
If you and your lenders agree you can afford both, then great, go ahead and get the newer car.
If not, you need to rethink either the house or the car.
Even a sheddy 2000 Impreza should be worth ~£1,500 I'd have thought. That's your budget for a dull TDi/HDi etc. Personally I'd do that rather than get a loan, with a view to building up a contingency fund for repairs, payments to the management company on a flat, etc. anyway.
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