Loan to cover deposit and fees for new property

Munkey92

Can anyone provide a bit of advice on how to apply for a loan to cover part of the deposit and fees for our new property?

We are first time buyers and have a mortgage (agreed in principle) and the bank is ready to send a evaluator out to have a look at the property.

I have done my application through an independant mortgage advisor. The bank has done a credit check, approved my credit rating but apparently they do a second credit check just before releasing the money. If I apply for a personal loan now, this will show up on my credit score and the bank may not release the funds. Is this true?

Can anyone please provide some solution, how I may get around this?

Thanks

Tixy

The whole point in the lenders requiring a deposit is that you have saved up for it so you are not overstretching yourselves financially - this is why 100% mortgages were done away with.

Did you tell the mortgage advisor you had a deposit saved?

I would imagine if you take out a loan for the deposit you will be unlikely to get your mortgage on top.

Or they will risk assess you again as to whether they think you can afford both the loan and the mortgage or are overstretching yourselves.

VIGILANT22

Why do you think lender's do a 2nd credit check before releasing funds..... for this very reason that people may take on additional credit. Cancel your mortgage application and save until you have a deposit.

Quite honestly if you haven't been able to save for a deposit, you're not in a position to take on the responsibility of a mortgage.

housebuyer_abc

VIGILANT22 wrote: »

Why do you think lender's do a 2nd credit check before releasing funds..... for this very reason that people may take on additional credit. Cancel your mortgage application and save until you have a deposit.

Quite honestly if you haven't been able to save for a deposit, you're not in a position to take on the responsibility of a mortgage.

The guy speaks sense, if you can't afford your deposit from savings you can't afford the house: SIMPLES : (to pinch a meerkat saying)

Munkey92

I earn enough to pay off a additional loan to cover the loan for the deposit.

Tixy

You might think that you can but unfortunately your potential mortgage lender may not agree.

You could try getting a loan and then seeing if you will still get the same mortgage at the same rate. But don't be suprised if you can't and the deal falls through (leaving you with a loan you won't need).

Better to use the amount you would pay off the loan to build up savings first then try to buy a house, once you have the 25% deposit - or whatever is required these days to get a good mortgage deal.

CHR15

THat begs the question... how come you have no savings?

Munkey92

I have savings but don't have the full amount. I have half the deposit but require assisatnce to cover stamp duty costs and the remaining part of the deposit.

TMoose

Munkey92 wrote: »

I have savings but don't have the full amount. I have half the deposit but require assisatnce to cover stamp duty costs and the remaining part of the deposit.

Then, frankly, you don't have the deposit. Nor do you have moving costs covered. I suggest you wait until you have saved a deposit and moving costs, and then think about what to buy. Banks will not accept loans as deposits because it's the equivalent of just increasing the LTV of the mortgage. Only unsecured. Which in the current environment just won't fly.

Sorry to disappoint, but unless you can find the rest of the money "free & clear" - parents, lotto, sale of assets etc... you won't be able to get the mortgage.

Moose

_Andy_

See other thread - as stated, no mortgage lender will accept a personal loan as a source of deposit.

jonesMUFCforever

Some banks will no longer lend on unsecured finance to assist in any property tranasctions.