loan for a deposit

waynethepain_2

Can anyone help? If I got a loan for a deposit (i.e. £8000) would it affect me when I get a mortgage?

cheers

_Andy_

Yes, no loan company will do it and no mortgage company will accept it as a deposit.
Oh, I forgot, most posters will say to you to lie, because fraud is the 'in thing' these days.

Peelerfart

_Andy_ wrote: »

Yes, no loan company will do it and no mortgage company will accept it as a deposit.
Oh, I forgot, most posters will say to you to lie, because fraud is the 'in thing' these days.

The moral high ground is detailed above .

The word fraud is often bandied around when it suits. Banks never talk of morals, and fair play is often ignored. These are outdated notions dismissed as doing what is best for the business(shareholders)

When you try to circumvent the restrictions this is labelled "fraud"

In my opinion .

Ephemera

Peelerfart wrote: »

The moral high ground is detailed above .

The word fraud is often bandied around when it suits. Banks never talk of morals, and fair play is often ignored. These are outdated notions dismissed as doing what is best for the business(shareholders)

When you try to circumvent the restrictions this is labelled "fraud"

In my opinion .

They are restrictions for a good reason.

And not just moral, but good economic sense too....

What happens WHEN the interest rates rise?

Who takes on the bad debt?

....everyone else.... just so some irresponsible liars can get a mortgage they can ill afford whilst responsible savers get screwed with higher taxes to pay for all the mess?!

I'll get me coat.

Robert_Sterling_3

_Andy_ wrote: »

Yes, no loan company will do it and no mortgage company will accept it as a deposit.
Oh, I forgot, most posters will say to you to lie, because fraud is the 'in thing' these days.

Some but not most.

michael1983l

I don't see why it matters. If you get an 8k loan and spend it on a 6 month holiday you can still get a mortgage, so why does it matter if you use it for a deposit?

opinions4u

michael1983l wrote: »

I don't see why it matters. If you get an 8k loan and spend it on a 6 month holiday you can still get a mortgage, so why does it matter if you use it for a deposit?

One of the main reasons for asking for a deposit is because it buys a genuine stake in the property. In the example you give above, the lender will reduce the amount they will lend and still ask you to provide a cash deposit.

Customer's with their own money invested are less likely to default.

Customer's with a relative's money used as a deposit are slightly more likely to default.

Customers given a 100% mortgage are more likely to walk away from their commitments because they never contributed to the purchase in the first place.

The same applies to those who borrow for a "car" from a loan company and then use their car money as a deposit for a house. It's the same as a 100% mortgage. They have no stake in the house and if their finances go tits up they have less inclination to find a way to meet their commitments.

You might find a crooked Mortgage Adviser tell you to do it (as this helps them to earn another commission). You might even get a lender's own staff to do the same for the same reason.

But ultimately, where the borrower has not made a contribution from their own pocket towards the purchase of a property, the lender is taking on a significantly higher risk.

CLAPTON

Mortgage lenders will take into account the level of your debts.
They do it in somewhat different ways. Some will reduce the debts from their offer of mortgage amounts and some will take affordability into account (i.e. how much are you paying each month).
Some will ask the origin of the deposit amount... they may be curious as to why you have debts and savings.