# Loan on top of Mortgage



## Mackky_101 (16 Apr 2021)

I am Just wondering has anybody taken out a credit union loan when they already have a mortgage approved?


Currently we are waiting for our mortgage to be approved but the land we are going to build on is starting a probate process which can take up to a year to clear which will mean we are unable to draw down our mortgage until then. my father is building the house and has explained he will build the house and when land is signed over i will then draw down the mortgage and pay him in full. But obviously this is very unfair on my father and a massive financial pressure on my father. So my question is when our mortgage is approved, could i go into the credit union (Which i have my savings with) and ask them for a loan of "x" amount, pay my father this to pay for a small bit of the house (nothing much but atleast its something) and then when mortgage is approved i could clear the CU loan and also pay my father for the rest of the house?


hopefully somebody would have some knowledge on this.

Thanks


----------



## RedOnion (16 Apr 2021)

It could potentially jeopardise your mortgage drawdown. They'll check your CCR before drawdown, see you've a big loan, and could withdraw the approval.


----------



## Cathbarr (17 Apr 2021)

I guess it would depend on how much of a loan you plan on taking out. We have a small personal loan with the CU which we took out in December (less than 5k) and we were approved for a mortgage switch in Feb. There was no questions about the credit union loan at all.


----------



## huskerdu (28 Apr 2021)

You should clear up a few things
- Is this correct: 

- You are due to inherit a plot of land, but currently it legally belongs to the estate of whoever willed it to you
- If you don't legally own the land, who has got planning permission to build a house on it ?
- You want to get a CU loan to pay your father to builld a house on land which you don't own


----------



## Elnino (28 Apr 2021)

You should talk to your bank before you do anything. If they were agreeable they could insert a clause in your letter of offer that the credit union loan would be cleared from your mortgage drawdown. Presumably they would want costing certificates from an engineer or architect to prove that the loan was used to do work on the house.


----------

