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Personal loan repayments 'key to seeking a mortgage'
Consumers should pay off personal loans as quick as possible if they want to increase their chances of getting a mortgage, it has been suggested.
Hilary Osborne of the Guardian has claimed that those who have kept up with repayments should attempt to clear their debts before they make an application for a home loan.
Writing for the news provider, she added that missing repayments can also have a significant impact on a consumer's credit record.
She added: "When assessing how much you can afford to borrow, lenders will take into account any regular monthly commitments and reduce the amount they are willing to lend accordingly."
Tim Moss, head of loans at Moneysupermarket.com, recently suggested that the UK market for personal loans has changed "beyond all recognition" in the past few years.
He added that recent months have seen lenders tighten up their lending criteria, which may impact on which firms that consumers select to approach for loans.