Can You Get A Mortgage If You Have A Loan (Will A Loan Affect My Mortgage Application)

If you have a personal loan, credit card debts, car finance or any other borrowing this will impact on your mortgage options available, but may not stop you getting a mortgage or remortgaging a property.

How Loan Payments Will Affect Your Credit Rating

If you have a loan or credit card debts your monthly debt repayments will affect your income and affordability of any mortgage you are considering. When you apply for a mortgage the lender will ask for your income (salary, tax benefits, and commissions) as well as examining your outgoings (utilities, food, clothing, transport and your debt repayments) this will determine the income multiples available for you to borrow.

Should I Repay My Debts Before Applying For A Mortgage?

This will depend on a number of factors including how much deposit you have available, and your possible loan to value on your mortgage. When you reduce your deposit amount by repaying your debts you may find you mortgage rate may increase. The benefit of repaying these debts is that in most cases the amount available for borrowing may increase.

Before doing anything with your debts please give us a call for a no obligation discussion on the options available to you, our qualified mortgage advisers have many years` experience and excellent knowledge, they will be happy to look at your current debts and see what mortgage rates are available to find what best suits which is the most suitable for your circumstances.

How much money should you borrow?
Depending on your income and the amount of your outstanding debt, mortgage lenders may let you borrow up to 95% of the appraised value of your home minus the amount you still owe on your first mortgage, but this will be dependent on your monthly income and expenditure.

Debt Consolidation Loan
Millions of Brits are in debt, we never plan it, it just happens. Whether it was a family emergency, death or money mismanagement, it can happen quickly and be hard to recover from. Below you will find some insights to debt and how to manage it.

Keep out of debt
With credit cards and other charge accounts your more apt to charge more than you can afford. One way to keep out of debt is to keep a record of your spending, look at it every month and see where you can cut spending.

Keep to a budget
Another way is to keep to a budget of monthly expenses, both planned and unplanned. Find out where you can cut costs and plan for the unexpected financial expense.

These two methods can help you keep out of debt or from getting further into debt, but what if your already in debt? Well that`s where we can help. We have experienced professionals waiting to provide help and advice with your debt problems, offering debt consolidation and refinance remortgages, call today and speak to one of our qualified mortgage advisers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

Established In 1988. Company Registration Number 2316399. Authorised & Regulated By The Financial Conduct Authority (FCA). Firm Reference Number 302981. Mortgages & Homeowner Secured Loans Are Secured On Your Home. We Advice Upon & Arrange Mortgages & Loans. We Are Not A Lender.

First Choice Finance is a trading style of First Choice Funding Limited of 54, Wybersley Road, High Lane, Stockport, SK6 8HB. Copyright protected.