Repaying personal loans - depending on what you took them out for - may give you a better chance of getting mortgage approval, an expert has said.
Personal loans might be a way to demonstrate your repayment ability, but Irish Mortgage Corporation Sales Director Liam O’Connor warned that can vary across lenders. He told Dublin Live: “Some lenders can have a view that, well, if it's a car loan that you're paying off, they can't really take that into consideration. They're going to need to have a car. Even though you might pay off a car loan today, you'll probably be taking another car loan in the not too distant future.
“It's also one of the benefits of dealing with somebody like a mortgage intermediary or a mortgage broker who has access to the different lenders and can obviously recommend the lender that is more suitable to the customer's need.”
