Personal Loan As A Deposit?

babyfreckles

I know that general up keep of a house is more, and in my position, I can afford to proberly save £100 a month, ontop of paying the rent, but if we wanted to move now, while the time is right for us (Albeit without deposit! lol) its the only way around it. To save £200 a month between me and my partner we could do, but would take us a couple of years to get the savings Not seeing your comments as negative, just feel its different for different people (If that makes sense?!)

TrickyDicky

babyfreckles wrote: »

I know that general up keep of a house is more, and in my position, I can afford to proberly save £100 a month, ontop of paying the rent, but if we wanted to move now, while the time is right for us (Albeit without deposit! lol) its the only way around it. To save £200 a month between me and my partner we could do, but would take us a couple of years to get the savings Not seeing your comments as negative, just feel its different for different people (If that makes sense?!)

This really is a sign that you cant afford it. There are many ways to save more:

Cut back on luxuries
Dont go out so much
Stop smoking/drinking
Work harder - get promoted - find another job
Find a house/flat with a lower rent. This may mean downsizing.
Do extra jobs.

Some people do these things and save up and eventually buy a house. If you cant prove you can save money now, how do you expect to show a bank you can afford to pay a mortgage and look after the house the bank bought for you (at the end of the day - the bank owns it until you pay off the mortgage).

babyfreckles

If I can afford to pay a mortgage and loan which is less than the rent I am paying now (£575), aswell as saving £100 a month I think this is a sign that I can afford it. I didnt say that I cant prove I cant save money now, because I can, its just if I want to buy a house now, I have no savings for a deposit.

To be fair, we have only been to the bank once for mortgage advice and nowhere else, things need looking into a bit more. We may even be able to borrow money from a relative - The loan was just another option.

I was just telling the original poster what the bank had told us...

And I just wanted to say, that I dont go out much anyway (Prob once every month/2 months), I dont smoke, dont drink (Only when I go out!), have recently got a promotion, thats what is prompting us to getting a mortgage, we cant downsize - we live in a two bed townhouse which is small anyway, we want bigger! And I dont see the point in doing extra jobs for the tax man to take it all! I work full time and only get the weekends to myself!

poppy10_2

babyfreckles wrote: »

If I can afford to pay a mortgage and loan which is less than the rent I am paying now (£575), aswell as saving £100 a month I think this is a sign that I can afford it.

What if your mortgage rate goes up? Interest rates are currently a tenth of their long-term average.

Bill_Shidding

Hi OP, I was in the same dilemma in 2002, when I "signed my life away" with my first mortgage. I asked my bank "nastywest" for a loan for the deposit (14k) and was truthful about the purpose of the loan. I got the loan and the mortgage without any problems. I never missed a payment and the loan is repaid. It was very hard to maintain all the outgoings in those first five years, but times were different. Work was steady and banks showered all and sundry with credit.
Who knows what the future will bring, think very carefully about it.
Ultimately, it is your decision. Make it wisely.

All the best,

Bill