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loan impacting on mortgage?

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  • loan impacting on mortgage?

    hi we bought our house (ex coincil) 2 years ago. with discount we got it for 35k. valued at 100k. took a 10 year mortgage and got a five year fixed deal. i wish to take a 10k loan to do some home improvements but, someone has said if i have a loan when it comes to getting another fixed mortgage for the last five years my loan would impact on any decision made. i know its still three years away but, would like some information if possible please...

  • #2
    Re: loan impacting on mortgage?

    Hi TJS42,

    I know the basics of mortgages and some general info but for something like this, additional borrowing while in a fixed rate term, would certainly be a question for mortgage broker or financial advisor, or better still, probably better to contact your current mortgage lender as each lender may have different rules.

    The advantage to this is also that if they were able to give you the additional £10k, they would probably be able to run through the financial side of things with you there and then, affordability, repayments, etc.

    Although I would like to add that if you were fortunate enough to get a £100k house for 35k, you've got yourself a bargain and in terms of remortgaging, etc, you're in a good position.

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    • #3
      Re: loan impacting on mortgage?

      hi barry thanks for the reply. my mortgage is with nationwide but, i bank with tsb so, the loan would be with them. i know my credit score is good and have never missed any payments plus the equity i would have in the house would hopefully secure my second 5 year fixed rate without any problems with the extra loan(hopefully). will still try and get in to see someone from nationwide to see what they say

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      • #4
        Re: loan impacting on mortgage?

        Apologies, I read it as extending your mortgage to cater for the 10k. As you say then, if it is to be a loan from another bank, considering your current equity and financial status, hopefully you should be approved for the £10k.

        No harm in speaking to both parties though, Nationwide to see what there view will be in 3 years time when it comes to remortgage knowing you will have a loan balance in place, as well as TSB to confirm the figures and that they'd actually give you the £10k loan. Assumin you dont have any other loans or huge Credit Card bills, I can't see it will be issue due to your property price and available equity.

        PS: Barny, not Barry -
        Originally posted by tjs42 View Post
        hi barry thanks for the reply.

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        • #5
          Re: loan impacting on mortgage?

          thanks for the reply and my sincerest apologies for getting your name wrong

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