bank loan for a deposit ?

andy,s_quest · 1 September 2009 at 5:30PM

This is my very first post anywere so here goes..
I wont bore you all with the personal history but the short version is im desparate to get (back) a place of my own. Like a lot of people i am struggleing to get together a deposit so im concidering getting a bank loan to cover it.
My aim is to buy beow market value at auction or a repossesion so my question is has anybody else managed this and what advise would you offer.
I should say that after a lot of work my credit rating is Excellent (experian) i dont have any debts

missile · 1 September 2009 at 5:37PM

Way back when I was a yoof in ............ , well sometime last century, I got a bank loan for the deposit on my first house. I gave the bank mamager a story that the money would be used for essential repairs to the house. I very much doubt that he believed me, but he believed in me and gave me the money anyway!

andy,s_quest · 2 September 2009 at 11:48AM

sure but now a days with instant credit checking im wondering if they will see i dont have a mortgage and will twig that im asking for the deposit

_Andy_ · 2 September 2009 at 12:09PM

No mortgage company will accept a loan as a source of deposit.
Likewise, I doubt you'll find a personal loan provider that will lend for that purpose anyway.
You need to continue saving.

jade1986 · 2 September 2009 at 12:46PM

Just thought I would add that, although I do not suggest doing it..

We have just been approved for a mortgage (had our offer) on a 95% LTV and have saved our deposit ourselves (£4,750) but..

I took out a loan with Lloyds TSB only 3 months ago for £8,500, no payments for the first 3 months so only made my first one this month. This was of course disclosed fully on the application, along with partner's loan, and my hire purchase.

1. Lloyds TSB never asked what the loan was for (but it was non-house related) I applied online

2. Mortgage company never queried as to whether this was where we obtained our deposit from, when I was in fact concerned they might, given that it was so close to us applying for the mortgage

Fire_Fox · 2 September 2009 at 2:21PM

andy,s_quest wrote: »

This is my very first post anywere so here goes..
I wont bore you all with the personal history but the short version is im desparate to get (back) a place of my own. Like a lot of people i am struggleing to get together a deposit so im concidering getting a bank loan to cover it.
My aim is to buy beow market value at auction or a repossesion so my question is has anybody else managed this and what advise would you offer.
I should say that after a lot of work my credit rating is Excellent (experian) i dont have any debts

Banks won't normally accept deposits that have strings attached (a loan). If you can't save for a deposit you can't afford to purchase. To buy at auction requires all your funds in place as you exchange on the day and complete in a month, so is most suited to a cash buyer.

If you complete a Statement of Affairs (link on sticky on DFW main page) and post up on the DFW board for comments they will advise where to cut back in order to save up.

Dinah93 · 2 September 2009 at 3:09PM

We've had some mortgage advice recently as we're thinking about looking, and have been told any debts we have will be effectively 'deducted' from our deposit when calculating our LTV amount. So if you had a £10k deposit and a £10k loan, your effective deposit would be exactly £0.

mortgage_adviser_2 · 2 September 2009 at 3:19PM

Yes this can be done you need to make an application for a mortgage, at the same time you ned to apply for a car loan from your bank. However as you will need a 10% deposit you may find that the repayment on the car loan will make it to expensive. Anyway thats how most people do it.

There may be some people on this forum that think you should continue to rent and line thier pockets instead.

_Andy_ · 2 September 2009 at 3:29PM

Wow great advice there - you're obviously a real professional. I'm sure the FSA would love you. Advocating fraud. Nice.

Cannon_Fodder · 2 September 2009 at 5:28PM

Looks like they are the deleting the fraud-recommender, no posts coming up on search.

Was spamming in his contact info...

mortgage_adviser_2 · 2 September 2009 at 6:12PM

_Andy_ wrote: »

Wow great advice there - you're obviously a real professional. I'm sure the FSA would love you. Advocating fraud. Nice.

Andy your a silly boy now sit down and find a job because broking never worked for you.

bank loan for a deposit ?

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