Small loan to make up deposit

bigriggers

Hi everyone,

My partner and I would like to move out at some point in the 2nd quarter of next year, although we will not have the required 10% deposit at that point. We will have around £7000 (would have more but have had a series of financial setbacks recently! )
Anyway, I was wondering if it was viable, or even allowed, to take a loan of say, £6000, to top up the deposit?
I know the sensible thing to do is to wait it out, but we really are desperate to move after having renting for the last 2 years. We will also want to start a family in the next few years.

Looking at some of the better loan rates, we'd be able to pay it back within 2-3 quite comfortably, as we don't have any current debts or loans outstanding.

We'd be looking at a house value of around £130'000, joint income is £50'000, increasing by £2k every year for the next 3 years (girlfriend is a teacher).

So, what's the verdict? :A

CLAPTON

you have an income of 50,000 lets say 3000 ish per month

then save 1000 per month then in 6 months you have 6k

if you can't then how will you live if you have children in a few years?

zppp

bigriggers wrote: »

Hi everyone,

My partner and I would like to move out at some point in the 2nd quarter of next year, although we will not have the required 10% deposit at that point. We will have around £7000 (would have more but have had a series of financial setbacks recently! )
Anyway, I was wondering if it was viable, or even allowed, to take a loan of say, £6000, to top up the deposit?
I know the sensible thing to do is to wait it out, but we really are desperate to move after having renting for the last 2 years. We will also want to start a family in the next few years.

Looking at some of the better loan rates, we'd be able to pay it back within 2-3 quite comfortably, as we don't have any current debts or loans outstanding.

We'd be looking at a house value of around £130'000, joint income is £50'000, increasing by £2k every year for the next 3 years (girlfriend is a teacher).

So, what's the verdict? :A

In almost all cases it is not permitted, and you have to prove where your deposit comes from.

TrickyDicky

No, you cannot use a loan as a deposit.
With a 50k income, it shouldnt take you too long to save up enough of your own deposit. if you cannot, the lender will wonder where all your money is going.

BritRael

Agree totally with all the above.

Also, don't forget that the current rates are at their lowest ever. If you take out a mortgage, it will be for around 25 years, and at some stage (probably in the not-too-distant future) the rates will rise.

CloudCuckooLand

bigriggers wrote: »

we'd be able to pay it back within 2-3 quite comfortably...

Take loan interest out of the equation and you could save the amount required in about 18 months, then...

...and if it can be repaid "quite comfortably", then with "a little discomfort" you should be able to save even faster.

Save.

Jackinbox99

You could do this. I certainly have in the past. But, you need to make sure you know the risks and can afford it. You obviously cant tell the lender that you want the money for a house deposit, but no reason why it cant be for a new car or home improvements.

I certainly wouldnt recommend getting a loan out for a deposit unless there really is no other option. Really id suggest waiting and saving for a few more months.

_Andy_

Jackinbox99 wrote: »

You obviously cant tell the lender that you want the money for a house deposit, but no reason why it cant be for a new car or home improvements.

No reason other than fraud.

bigriggers

Ok guys well thanks for confirming what I kind of already knew deep down, think I'll stick with the sensible option of waiting!