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  • FIRST POST
    • Will of the forest
    • By Will of the forest 9th Oct 17, 9:16 AM
    • 4Posts
    • 0Thanks
    Will of the forest
    Loan for bigger deposit
    • #1
    • 9th Oct 17, 9:16 AM
    Loan for bigger deposit 9th Oct 17 at 9:16 AM
    My wife and i are getting frustrated by the time its taking to save for a house deposit. Plus we're not getting any younger! We have enough for 5% on a reasonable property but obviously a 10% deposit would make things more affordable in the long term. As there are a lot of very low rates being offered on loans at the moment we were wondering if taking out say a 10k loan to add to our current savings to get to the 10% mark would be a good idea?
Page 1
    • ViolaLass
    • By ViolaLass 9th Oct 17, 9:45 AM
    • 5,036 Posts
    • 6,950 Thanks
    ViolaLass
    • #2
    • 9th Oct 17, 9:45 AM
    • #2
    • 9th Oct 17, 9:45 AM
    You're not the first to think of it and the mortgage lender won't like it. The loan will affect your affordability.
    • YHM
    • By YHM 9th Oct 17, 10:07 AM
    • 90 Posts
    • 30 Thanks
    YHM
    • #3
    • 9th Oct 17, 10:07 AM
    • #3
    • 9th Oct 17, 10:07 AM
    As above, the MAJORITY of lenders won't like it. I can only think of a couple of lenders that will openly allow it
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
    • juniordoc
    • By juniordoc 9th Oct 17, 10:12 AM
    • 189 Posts
    • 115 Thanks
    juniordoc
    • #4
    • 9th Oct 17, 10:12 AM
    • #4
    • 9th Oct 17, 10:12 AM
    I know its hard, my partner and I have saved for 6.5 years to get out first deposit together.
    Try and be patient, more debt is not going to help you. Focus on minimising your outgoings and making sure your savings are earning as much interest as possible. There are also a few cash incentives being offered for switching current accounts at the moment that might be worth a look.
    Keep going, it will be worth it in the end!
    • Will of the forest
    • By Will of the forest 9th Oct 17, 10:52 AM
    • 4 Posts
    • 0 Thanks
    Will of the forest
    • #5
    • 9th Oct 17, 10:52 AM
    • #5
    • 9th Oct 17, 10:52 AM
    Thanks for replys. We thought the mortgage lenders wouldnt like it but doing our own calculations it could actually work out cheaper per month with a loan to make up a bigger deposit then having a larger mortgage with a smaller deposit. I know it probably isnt as simple as that but we were hoping for a miracle answer i guess
    • YHM
    • By YHM 9th Oct 17, 10:56 AM
    • 90 Posts
    • 30 Thanks
    YHM
    • #6
    • 9th Oct 17, 10:56 AM
    • #6
    • 9th Oct 17, 10:56 AM
    As I say, there are some lenders open to it, but you need to speak to a mortgage broker about your options.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
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