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Personal Loan for House Deposit
syd433
Posts: 3 Newbie
Hi there,
Me and my wife are looking to move house to a bigger house as we have a baby on the way. :-)
We currently live in a house worth around £125k and would move to a house worth circa £225k - £230k. In order to move we would need a minimum 10% deposit but don't have enough equity in our house to go for that - due to our house value dropping. We have been overpaying on our mortgage to build up equity but would need a loan of around £15k to make the move. Staying in our current house is not an option for various reasons.
I'd be interested to hear views on this; particularly from people that have done this. Some pros and cons.
Cheers
Me and my wife are looking to move house to a bigger house as we have a baby on the way. :-)
We currently live in a house worth around £125k and would move to a house worth circa £225k - £230k. In order to move we would need a minimum 10% deposit but don't have enough equity in our house to go for that - due to our house value dropping. We have been overpaying on our mortgage to build up equity but would need a loan of around £15k to make the move. Staying in our current house is not an option for various reasons.
I'd be interested to hear views on this; particularly from people that have done this. Some pros and cons.
Cheers
0
Comments
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As far as everything I have read on here goes, it doesn't work. Mortgage lenders don't give mortgages when the deposit is a loan.
You could state that the loan is for something else, and use it there anyway, but it's highly suspect, and fraudulent, and is also more debt that they will take into account when working out how much you need.
If staying in the current house isn't an option, then as far as I know, renting is your only choice for now.0 -
find something bigger in a cheaper part of town?0
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Do you really need a bigger house? You don't mention other children, and baby can sleep in your room for the first year. Why not carry on budgeting/ overpaying until your wife goes back to work then look to move? Hopefully by then the market will have stabilised. Otherwise why not sell up and rent a larger property?Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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Moving is not a sane option until you have some equity.... In order to move we would need a minimum 10% deposit but don't have enough equity in our house to go for that - due to our house value dropping. We have been overpaying on our mortgage to build up equity but would need a loan of around £15k to make the move. Staying in our current house is not an option for various reasons.
I'd be interested to hear views on this; particularly from people that have done this. Some pros and cons.
Cheers
The fact that you have lost equity due to house values dropping is exactly why it is a bad idea to take a loan for your equity. It means that you are always on the margins of negative equity.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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