Taking out a loan to pay provide a deposit - good or bad idea?

simbamuchemwa

Quite a lot of unhelpful posts on this question. I for one had a 100% mortgage for my first house, have since overpaid on my repayments and have paid off 20% in 2 years. I didn't have any savings to pay deposit when I bought the house. A lot of the posts assume not having a deposit necessarily implies being unable to afford a home, I just think that is a myopic conclusion, a sign of lazy thinking!

brit1234

neverdespairgirl wrote: »

You are likely to be asked to prove it, and your parents to guarantee it. If everyone starts lying at that point, looks like obtaining a pecuniary advantage by deception, to me.

Pecuniary advantage is now gone replaced by the new fraud act. The original poster will be comitng fraud by miss representation. One of my first arressts was for pecuniary advantage a fair few years ago (good memories ). It should be a straight forward and arrest for the original poster for fraud by miss representation if found out. Personally i would save the deposit rather than get a criminal record, credit blacklisted and time away from partner/children behind bars.

This post reminds me of the good old days of 2007 when people thought it was personally justifiable to inflate their salaries on self cert mortgages.

I'm glad most of the posters here think you should save a deposit to buy a house.
:T

DVardysShadow

simbamuchemwa wrote: »

Quite a lot of unhelpful posts on this question. I for one had a 100% mortgage for my first house, have since overpaid on my repayments and have paid off 20% in 2 years. I didn't have any savings to pay deposit when I bought the house. A lot of the posts assume not having a deposit necessarily implies being unable to afford a home, I just think that is a myopic conclusion, a sign of lazy thinking!

Well bully for you. What you call unhelpful posts are actually pointing out the risks. You seem to have come out of it OK as you were able to take swift action to minimise the risks. Not everyone will be in the position to understand the risks or the need to take mitigating action - or even be in the position to do so.

Most people who don't have a deposit when they start will not have one for a reason. And for that same reason, they will not be able to pay the mortgage down by 5% in 2 years, never mind 20%. So they would be well advised to avoid buying. The value of your experience to most people who do not have a deposit is precisely nil.

[Resurrection of old thread noted]

Ronaldo_Mconaldo

It's modern society these days. If soemone says something you don't like to hear then they must automatically be ignored until you get the answer you want to hear. Those who forget the past are doomed to repeat it.

There was a massive financial crash just recently, OP. It was down to a whole numner of reasons, one of which were people buying what they coudln't afford and also lying, lots of lying. Looks like you missed the boat last time and are attemtping to stow away on the next one.

pararct

OP Don't let the comments on here get you down. You probably are inexperienced in this matter but are now far better informed.
New Build flats have a habit of haemorrhaging value anyway.

Leave it for 2 to 3 years and save hard for a deposit.

ruggedtoast

Sigh. Necrothread resurrection. Reply deleted.

The_Palmist

You have declined the offer of money from your parents but yet you are happy for them to take out a loan for you ? Why not just borrow from your parents and repay them with interest rather than paying the banks.

The_Palmist

GoldenUx wrote: »

Erm I haven't committed anything so enough of the finger pointing! I've come here for advice so now I know NOT what to do. I'm not familiar with the law because I'm not a criminal or a lawyer or police officer. Hence my naivity!

That's the right attitude, there is so much to learn here. Even among the most rude replies ....hides wisdom you can't easily find elsewhere.

Don't get upset, just read all replies and make an informed decision.

The_Palmist

Fang wrote: »

You don't sound ready to buy a house. Far too immature.

We have to start somewhere, you are not suggesting going on a degree course before OP buys a house, are you ?

He has been willing to learn and has came here to learn more. If he was not ready he would have made a not so wise decision and would be here crying over spilled milk.

Gwhiz

simbamuchemwa wrote: »

quite a lot of unhelpful posts on this question. I for one had a 100% mortgage for my first house, have since overpaid on my repayments and have paid off 20% in 2 years. I didn't have any savings to pay deposit when i bought the house. A lot of the posts assume not having a deposit necessarily implies being unable to afford a home, i just think that is a myopic conclusion, a sign of lazy thinking!

this thread is over a year old!!!!!!!!!!!!!