UKH

When applying for a loan, if you know your circumstances will change virtually instantly upon taking out the loan should you use current figures for your income and outgoings, or should you use the future figures (which are concrete and known rather than predicted)?

In this case, the change is favourable for me: if I'm approved for the loan my rent payments will drop to £0 as the loan will be used to buy a narrowboat to live aboard. Obviously £750 per month is a reasonable chunk of money when it comes to calculating loan affordability, and so I'd prefer if I were able to legitimately claim £0 outgoings for rent (and an increase in other monthly outgoings, which I can make an informed estimate of from prevoius experience).

It won't be the first time I've lived aboard, so I'm very realistic about it as a lifestyle - no doom and gloom stories needed!

I think this is a question for the lender

Quite - and I will be giving them a call in the morning. Just curious to see what the hive mind thinks as I'm sure there must be someone on here who has ran into this before.

It’ll depend on the lender and their underwriters skills and ability to use commonsense, hopefully they’ll see the bigger picture and take a commercially minded view 

You need to explain that, otherwise zero rent means that 750pcm has gone on general spending as you haven't saved it and it is not available to pay off the loan.

Probably best not to tell them you'll be moving on to a boat i.e no fixed abode. Unless you have an address you can use. It can be difficult to explain to banks etc that you live on a river, floating about "somewhere" (speaking from experience).

My parents are very understanding when it comes to me using their address...

But yes, I did wonder whether disclosing the fact might result in being looked on less favourably because of that reason.

We said the loan was for a new car, unless your going for a marine mortgage.

A personal loan would be cheaper than a marine mortgage. However beware of committing application fraud, Financial companies frown upon this and could demand money back and make it tricky to get credit in future 

A mate of mine got a personal loan to buy a boat. 

I've had a personal loan to buy a narrowboat before so it's certainly not impossible - though the last one was brokered by a broker specialising in marine finance.