Ideas to reduce LTV so interest rate reduces

littlemissfavored

Advice please.

I am a first time buyer, I would like to reduce my LTV and hence my mortgage interest rate before I complete by depositing an additional £15k which I do not have right now. I am debt-free.

I considered a loan but the loan interest rates are actually higher than the mortgage rates.

Is this a wise idea? If yes please offer suggestions.
many Thanks,

Cat695

well seeing as mortgages have the lowest rates then your out of luck.....though you could

rob a bank
sell your body
sell a body part
go in with an even lower offer
find somewhere cheaper

but if you can get 15 grand for less interest than a mortgage then please let me know

opinions4u

Borrowing for a deposit is invariably a bad idea and asking for trouble.

As you have discovered, the fraction of a per cent you save on the mortgage deal is more than outweighed by the blighters charging you lots of interest on a loan.

Additionally, and most importantly for me, the repayments on a shorter term loan could actually impact heavily on your ability to afford your mortgage and enjoy the positive benefits of home ownership.

Gifts of large amounts of cash from Granny on the other hand .... might save her paying care fees in the future!

_Andy_

littlemissfavored wrote: »

Advice please.

I am a first time buyer, I would like to reduce my LTV and hence my mortgage interest rate before I complete by depositing an additional £15k which I do not have right now. I am debt-free.

I considered a loan but the loan interest rates are actually higher than the mortgage rates.

Is this a wise idea? If yes please offer suggestions.
many Thanks,

1) No mortgage company will accept a personal loan as a source of deposit

and

2) No loan company that I know of will loan you money for a deposit.

So no not a good idea.

Wutang_2

_Andy_ wrote: »

1) No mortgage company will accept a personal loan as a source of deposit

and

2) No loan company that I know of will loan you money for a deposit.

So no not a good idea.

Totally disagree - i took out a loan for my deposit and I am loving it.

When they ask where the source of my deposit came from, I told the truth - it was in my savings account.

So, a good idea

dwsjarcmcd

Wutang wrote: »

Totally disagree - i took out a loan for my deposit and I am loving it.

When they ask where the source of my deposit came from, I told the truth - it was in my savings account.

So, a good idea

Oops meant to quote you rather than thank you..doh!

It all depends on the interest rate you are charged but there are several other points that make it a daft idea.
1. Who is going to lend you £15k unsecured? These type of lenders have tightened their criteria as much, if not more than mortgage lenders, simply because they have no security.
2. You could end up with muliple credit searches on your file as you search for someone to lend you the money. Not a good idea.
3. The poster above may have said the money came from savings but that doesn't alter that you will need to declare a personal loan for £15k, which will inhibit your borrowing capacity.
4. As has been mentioned above, you will be paying it off over a short term, which increases your monthly outgoings.

All, unless you got it from family and don't need to repay it either at all, or with interest.