Personal Loan for deposit ?

g_attrill

andyslinz wrote: »

After looking into it more we could pay just £1750 deposit, which I can cover with my overdraft and my boyfriend could pay the legal costs. Would this be allowed ? Sounds much better than getting a loan to pay for the deposit.

You could probably get away with it, but you need to declare the source of your deposit and saying "overdraft" would most likely get you turned down, and saying "savings" would be fraud.

If there is plenty available around that price it would be much much better to rent a smaller place, knuckle down and save hard and be able to move without the stress of being in two kinds of debt straight away. Given your joint income is around £30k it shouldn't be too tricky to save £5-10k.

On the house prices - they might rise, but most likely they will be static, or fall by then, even if they do rise I doubt it will be enough to get stressed over. In most places there is a short supply which is propping up prices, people are panicing like anything.

DVardysShadow

andyslinz wrote: »

Just had another thought.

Could for example one of us take the loan out to buy a car ( then change our mind )

And the other take out the mortgage and then the deposit would be from a relative and not a loan.

Obviously only one of us would have our name on the house but we would be fine with that and could change it in the future.

What do you think?

Obviously, I don't want to suggest that you will split up, but you must work out what would happen. One would have an overdraft and no home and the other would have a house and a loan and neither will have much grounds to get a fair settlement if they are the loser, depending on how it all works out. You really should put in equally and own equally.

andyslinz

As previously requested here is our budget, it includes £100 savings pm and £100 to holiday savings pm, life & buildings insurances, 1/12 of yearly costs ( Mot, car service etc). This doesnt include our rent as i wanted to see what we have to pay mortgage payments.

Total Income £ 1,972.00
Total Household Costs £ 324.67
Total Finance Costs £ 130.00
Total Transport Costs £ 105.00
Total Shopping & Leisure Costs £ 380.00
Total Expenditure £ 939.67
Net income before mortgage payments £ 1,032.33


I am thinking of arranging to see my bank manager this week and see if they might be able to offer us a mortgage and loan together.

Im hoping with us looking at taking a small step onto the property ladder with a house around 40k and not 100k+ they might be able to help us out or at least offer some guidance.

Im going to take the 8 property brochures i have ranging from 30 - 60k. Will also try and arrange to view a few this weekend if possible to see what they are like.

It looks like we are going to have to rent again but if given the chance would love to buy.

Edit : just to note, the above budget comes into affect end of october when we recieve payrises, so cant save any great amont before being kicked out 1 december.

poppysarah

Save. You'll be glad you did in a few years.

BitterAndTwisted

Will you pop back on here and let us know how you get on with the bank maanger?

andyslinz

poppysarah wrote: »

Save. You'll be glad you did in a few years.

The problem is the short term tennancys, so you always feel like you have to be ready to move out in xx months, and we both take exams twice a year and the lack of stability is really not helpful.

I really understand its much better to save up, but we could save more money if we buy a house in december !! The 40k house wouldn't be a home we plan to live in for more than 10 years, we would keep it and rent it out, get another morgage on a more expensive property when we are both qualified in our professions earning another 10k gross each extra a year.

andyslinz

BitterAndTwisted wrote: »

Will you pop back on here and let us know how you get on with the bank maanger?

Certainly will, Im guessing you think he will laugh us out of the bank lol , hopefully not

BitterAndTwisted

I doubt they'd be that unkind but it would be interesting to hear their advice and see if it differs from what you've received on here.

Pobby

Just looking here. I was wondering where you can still get a decent place for £35k?

andyslinz

Just to update...
We had our meeting with the bank manager...back in September! How time flys!

We got a loan and a mortgage deal with the same bank, and bought our lovely house in November, moved in in December and we have settled in nicely

The loan was at a high rate and the repayments were ridiculous, but last month we took out a loan at a better rate to pay it off. Our mortgage payments are lower than the rent we had been paying and we love the house!

So we are very happy!!

Thanks to all of you who contributed, and sorry for the delay in replying!

Time really does fly when your having fun...Decorating

andyslinz