Got approval but want more

N

newhome

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Hi,
This might sound like a stupid question but...
Got approved for a mortgage for 325000 (because of an outstanding loan can't get more) but the way things are looking might need more to get the house we want. Like say if a house was 330000 and if we got a loan of some other bank for the other 5000, would the bank we got the 325000 off check this?

Thanks
 
You'd have to declare all loans on the mortgage application. Why not concentrate on clearing the other loan first? There's not much point in saving for a deposit (and presumably earning <3.5% on the savings) while also paying down a loan (presumably at a higher rate) — unless it's a fixed term loan with penalties for early redemption...?
 
Because if he takes his time, pays off his debts, save for deposit, buy house, then house prices will be even higher, and so will have to borrow even more. Well that's the logic anyway.
 
Maybe you're trying to buy beyond your means? Have you shopped around with more than one lender?
 
Ya have shopped around a bit. The bank we are with is the one that will give us the most. We both had car loans and my parents paid off mine but my partner hasn't paid his off.
 
You could get a loan from the credit union. The mortgage lenders have no way of checking this. However they will see if you have loans from other financial institutions.

Before the guardians of virtue get on my case, let me point out that you SHOULD declare the credit union loan on your mortgage application. However I am just telling you that mortgage lenders cannot find out if you have a loan from this source.
 
Art said:
You could get a loan from the credit union. The mortgage lenders have no way of checking this.

...

However I am just telling you that mortgage lenders cannot find out if you have a loan from this source.
Click to expand...
Not strictly correct. Some CUs already co-operate with the ICB and more (all?) are planning to do so anon.
 
Presumably the lender is taking into account the car repayments when calculating your ability to repay - so if you are paying say Eur200 a month on a car loan that would have a big impact on how much they would give you.
Clearing it would allow them give you much more than an extra 5k.

could you clear it with a temporary loan from parents, get the bigger mortgage based on your lower repayment obligations and then get a car loan afterwards to repay back the parents - it will still be easy enough to get car finance afterwards.
 
I would ask the bank straight out for an extra 5K. Can't believe they wouldn't give it to you... Or otherwise, try go through a broker. I've heard multiple times that brokers can always negotiate a bit more for you than the banks are offering directly.
 
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