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Using a loan as a mortgage deposit.
marleyuk_2
Posts: 10 Forumite
Hi,
If I was to use get a loan for approx £10,000 then add £10,000 of my own savings giving me £20,000 as a deposit, would this work? Im struggling to save the additional £10,000 needed towards getting my 20% deposit. I have no other outstanding debt.
Thanks,
Ian.
If I was to use get a loan for approx £10,000 then add £10,000 of my own savings giving me £20,000 as a deposit, would this work? Im struggling to save the additional £10,000 needed towards getting my 20% deposit. I have no other outstanding debt.
Thanks,
Ian.
0
Comments
-
No it wouldn't work.
Problem 1) no mortgage lender will accept a loan as a deposit.
2) I don't know of any loan companies that will lend for that reason.0 -
As per Andy above and also if you did manage to take a loan out for £10K you would then reduce your mortgage borrowing by the monthly loan committment so you would lose out anyway.
Just stick to your guns and get saving
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, 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.0
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