Advice for those buying new vans with mortgage

[James-Alex]

Hey folks!

Just wanted to make you aware of the issues certain mortgage companies are having at moment.
We have paid deposit nearly 4 weeks ago and now have to wait a further 2 weeks since mortgage agreed for a valuation on prop. I know that would sound normal to most but we have more equity than loan and need a value so much less than property is worth. The banks have lent lots and are now being super cautious with lending hence the situ we are in.
Alex works for a big bank and has been pulling some favours but they won’t budge. We paid deposit and were given 4 weeks to pay balance. That expires next week and they want to do full valuation and they have a two week backlog. Ruined are time booked off and means we stand a chance of loosing are dream moho hopefully the dealer will honour our issue. We will also loose a 2k non refundable deposit.
They have said they have people that have had applications since August due to buying caravan and moho


Please be aware of these problems if in are situation.
All the best
James

 

[pappajohn]

I couldn't figure out what mortgages had to do with motorhomes but now I see..... You mean buying a van using equity in your home to finance it.

 

[James-Alex]

I couldn't figure out what mortgages had to do with motorhomes but now I see..... You mean buying a van using equity in your home to finance it.

Yup!! It’s crazy the delays

 

[dealornodeal]

Why not seek finance (HP) to complete the purchase (with no early repayment penalty ) to complete the deal pending the mortgage monies coming through and then clear the finance when these funds are received. It may cost a little more but will be less than loosing £2k deposit monies.

 

[M-J]

So only people wanting to remortgage quickly to buy a van that already has a deposit paid?... I dare say not many.

As mentioned above, get HP and pay off when the remortgage is done.

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[James-Alex]

Just concerned the finance could have a negative impact on credit score! I’ve said that to Alex. It’s just more of a warning for others that may be looking.

 

[lorger]

I’d explain to the dealer what the issue is as I’m sure they won’t want to lose a sale even if they get 2k for nothing.

 

[Podney]

If Alex works for a big bank I’m surprised she doesn’t know how slow and useless many lenders are.

I think your dealer will wait. If they don’t,they are not the right people to do business with. You will get a deal elsewhere and might save money in December/January.

Personally,I’ve never had a loan secured on my house other than for the purchase of that house. I know that it’s attractive in these years of ultra low interest rates,but you might suffer when rates go up.......however unlikely that may seem at this time.
Good luck.

 

[James-Alex]

I’d explain to the dealer what the issue is as I’m sure they won’t want to lose a sale even if they get 2k for nothing.

hoping they won’t shaft us I must say. It’s not afe fault and we do have other funds to give as a sweetener so they know we’re still keen. It’s a very reputable dealer. They hopefully have a heart and I’m sure others will be in same situation as us

 

[dealornodeal]

Surely your mortgage funds have already been agreed if the Bank are doing a valuation. in which case it will not affect that deal, it may mean that the finane company think that he mortgage further advance has already happened and would take into account the increased mortgage payments when assessing your ability to repay the finance on the MH.

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[James-Alex]

If Alex works for a big bank I’m surprised she doesn’t know how slow and useless many lenders are.

I think your dealer will wait. If they don’t,they are not the right people to do business with. You will get a deal elsewhere and might save money in December/January.

Personally,I’ve never had a loan secured on my house other than for the purchase of that house. I know that it’s attractive in these years of ultra low interest rates,but you might suffer when rates go up.......however unlikely that may seem at this time.
Good luck.

I agree with using the property for loans but this is just adding a bit to it. We’re both quiet young and have a few years left in us hopefully to pay the mortgage.

my post was just really to advise people of the delays and possible issues

can I delete this? I’ve looked

 

[James-Alex]

Surely your mortgage funds have already been agreed if the Bank are doing a valuation. in which case it will not affect that deal, it may mean that the finane company think that he mortgage further advance has already happened and would take into account the increased mortgage payments when assessing your ability to repay the finance on the MH.

Surely your mortgage funds have already been agreed if the Bank are doing a valuation. in which case it will not affect that deal, it may mean that the finane company think that he mortgage further advance has already happened and would take into account the increased mortgage payments when assessing your ability to repay the finance on the MH.

Yeah all agreed. Valuation won’t be problem at all. Just the 4 weeks will be up before we get the valuation appointment

 

[Steve and Denise]

Maybe open a business then apply for government guaranteed 50k then close the business, it would seem a lot have done this.

 

[Otter Spotter]

Hey folks!

Just wanted to make you aware of the issues certain mortgage companies are having at moment.
We have paid deposit nearly 4 weeks ago and now have to wait a further 2 weeks since mortgage agreed for a valuation on prop. I know that would sound normal to most but we have more equity than loan and need a value so much less than property is worth. The banks have lent lots and are now being super cautious with lending hence the situ we are in.
Alex works for a big bank and has been pulling some favours but they won’t budge. We paid deposit and were given 4 weeks to pay balance. That expires next week and they want to do full valuation and they have a two week backlog. Ruined are time booked off and means we stand a chance of loosing are dream moho hopefully the dealer will honour our issue. We will also loose a 2k non refundable deposit.
They have said they have people that have had applications since August due to buying caravan and moho


Please be aware of these problems if in are situation.
All the best
James

Why are you borrowing on a long term loan ( residential mortgage) to purchase a depreciating asset ? You could potentially be paying for your motorhome well after it’s scrapped.

 

[Captain Yoghurtpot]

Not sure if I understand this correctly but,
Does the lender know or even allow a mortgage extension against a property which will not be used to add further value to the property lent against.
I was of the understanding that only advances or extensions of this sort were for property improvement and enhancement or repair/renovation.
Or have I got your situation completely base over apex?

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[Phill D]

Why are you borrowing on a long term loan ( residential mortgage) to purchase a depreciating asset ? You could potentially be paying for your motorhome well after it’s scrapped.

its called "personal choice"!

 

[Otter Spotter]

its called "personal choice"!

I realise that and for some people it may be the only way to buy a motorhome, but have a good think about it first.

 

[pelican]

Why are you borrowing on a long term loan ( residential mortgage) to purchase a depreciating asset ? You could potentially be paying for your motorhome well after it’s scrapped.

Some people like to have the latest met quite a few,It's just a different lifestyle occurring more frequently nowadays

 

[gus-lopez]

Not sure if I understand this correctly but,
Does the lender know or even allow a mortgage extension against a property which will not be used to add further value to the property lent against.
I was of the understanding that only advances or extensions of this sort were for property improvement and enhancement or repair/renovation.
Or have I got your situation completely base over apex?

You can re-mortgage & use it for anything.

 

[James-Alex]

Honestly wish I hadn’t posted this now! Jim can you possibly delete please?

this was mainly to advise anyone is adding a bit to a mortgage to be careful due to the delays.

but for info we’re both under 40 and have put a lot down over the years towards the house . We like to go away and normally spend time camping and abroad. Has made us both want to have something to do at weekends with covid around
adding a small bit that is so much cheaper than the loan interest. Minimum payments if we sell after a year we get the money back and pay of mortgage again.

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[Otter Spotter]

Honestly wish I hadn’t posted this now! Jim can you possibly delete please?

this was mainly to advise anyone is adding a bit to a mortgage to be careful due to the delays.

but for info we’re both under 40 and have put a lot down over the years towards the house . We like to go away and normally spend time camping and abroad. Has made us both want to have something to do at weekends with covid around
adding a small bit that is so much cheaper than the loan interest. Minimum payments if we sell after a year we get the money back and pay of mortgage again.

James, really sorry didn’t want to upset you, I was an IFA for 40 years before retirement, and I saw many people come unstuck, but I fully understand that you must live your dream now, know one can tell you what is going to happen next, so if you have thought it through then great you must do it and enjoy life now.
please don’t let me stop you from posting on Here.

 

[Podney]

Honestly wish I hadn’t posted this now! Jim can you possibly delete please?

this was mainly to advise anyone is adding a bit to a mortgage to be careful due to the delays.

but for info we’re both under 40 and have put a lot down over the years towards the house . We like to go away and normally spend time camping and abroad. Has made us both want to have something to do at weekends with covid around
adding a small bit that is so much cheaper than the loan interest. Minimum payments if we sell after a year we get the money back and pay of mortgage again.

Yes,you did state that you were warning others,but you then went on about your personal situation.

Funsters just trying to help!!!!!!!!!!!!!!!!!!

 

[Captain Yoghurtpot]

You can re-mortgage & use it for anything.

Right!
Morello here I come!!!!!!!!
Should get a good loan on my shed!

 

[Otter Spotter]

Right!
Morello here I come!!!!!!!!
Should get a good loan on my shed!

No you should get that new kitchen your other half has been shouting for first, then ok we will let you

 

[Abacist]

Maybe the dealer has a stocking loan that he needs to to repay by a certain date and hence the time limit for the customer to pay for the van.

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[Rosemary1]

Honestly wish I hadn’t posted this now! Jim can you possibly delete please?

this was mainly to advise anyone is adding a bit to a mortgage to be careful due to the delays.

but for info we’re both under 40 and have put a lot down over the years towards the house . We like to go away and normally spend time camping and abroad. Has made us both want to have something to do at weekends with covid around
adding a small bit that is so much cheaper than the loan interest. Minimum payments if we sell after a year we get the money back and pay of mortgage again.

It’s your house and your money so you can do what you want with it. I agree life is too short if it is something important to you.

Perhaps that if you speak to the dealer and explain hopefully he will extend the time limit - as you say others could be in the same situation, and blimmy how often have dealers extended delivery times

 

[maison]

If the dealership is the one I think it may be you will be OK. If they won’t hold it over for you, (because they have an immediate buyer, perhaps), they will probably give you a credit note to use against another motorhome. It would then be up to you to choose a different model or re-order your original choice, assuming it is a new motorhome you are buying.

 

[The Wino]

I think as otter spotter has said it's up to people to decide how they finance their wants. Personally I would only buy a vehicle with money thats actually mine but I'm probably a bit of a dinosaur. By the sound of it the mortgage has a repayment facility if someone borrowed money that way to purchese and got a good fixed rate they could pay the same as HP would cost and pay it back sooner and with less interest. The drawbacks would be the application and valuation fee.
Also motorhomes keep their value in general a lot better than other vehicles it would make a lot more financial sense to have a cheaper car and motorhome on finance than the other way around.
Lets hope the dealers honour the deal even on the cost of a motorhome the interest over just a couple of weeks extra will be peanuts.

 

[AG 2602]

We bought about 18 months ago took a bit out of the pension pot and we really enjoy it.
Had I discovered this a few years back I would also have used equity from the house to purchase.
We have already saved a few thousand on what we would have normally spent on foreign holidays and stuck that back into the pension pot.
Go for it and enjoy your travels

 

[Spriddler]

Maybe open a business then apply for government guaranteed 50k then close the business, it would seem a lot have done this.

According to R4 today the banking delays have been caused primarily by several hundreds of thousands of applications from people wanting to open business accounts in order to benefit from the Gov't financial help package.

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