I need a £5000 deposit for shared ownership but already have a loan. Can I have 2?

busy_mummy

Could someone please give me and my partner some advice?
We have a household income of £37000 and are unable to get on the property ladder without saving forever.. Opposite my council house they are currently building shared ownerships homes. It costs £155,000 for the house but we can buy 50% of it, to cut a long story short, we need to raise £5000 for a deposit (including fees) but 3 months ago we took out an £8000 loan to pay off debts and get a car. My q is:
Can we apply for another loan of £5000 (we could easily afford the monthly payments on everything), or do we ask are current loan company santander to top up our current loan? CAn u even get a loan for a deposit or is it not allowed?? Please help, we're in a 2 bed with a boy & girl, a good income but cant get on the property ladder, this shared ownership scheme would be ideal

dmg24

If you can easily afford repayments, why can you not afford to save up the deposit?

intranicity

You would be paying two loans though, one for £8k and another for £5k, then you would have a mortgage of £75k to pay and rent on the other 1/2 of the property to pay, and then live, can you afford it still?

If so, you can have as many loans as you can get people to lend you, there is no limit

paddyrg

As a general rule, you can't borrow above 50% of your income, so if you have no other loans, credit cards, etc, you could probably take an unsecured loan - however you are waaaaay better off to use savings if you are paying a cash deposit on a property, otherwise you're effectively borrowing 100% of the purchase price, which may concern any mortgage companies down the line.

~Beanie~

Lenders will want to know where your deposit came from and using a loan is not acceptable.

busy_mummy

It would take to long to save for a deposit now at the age of 35...Y can we get a loan to pay for a deposit?
Surely as long as we can afford the repayments, whats the problem?

MsHoarder

£5000 over a year would only be £420/month. If you're saving interest works in your favour, rather than against as it would with a loan, so the overall cost is less. Also, is going almost straight from debt problems to buying a house a good idea?

And a mortgage company will do a credit check, and would be worried by a recent loan the size of your deposit. Part of the idea of a deposit is that you put some of your own money forwards!

chalkie99

Have your circumstances changed recently?

If not, I wonder how you can "easily afford" the repayments when only a few months ago you took out a loan to pay off debts.

You cannot, as a rule, borrow money for a deposit on a mortgage and lenders will check where the deposit has come from.

However, I would suggest popping over to the Debt Free Wanabe board and complete a SOA (Statement of Affairs) so you can see exactly where your finances stand. Without all the details it is difficult to work out but, as a rough estimate it looks like the mortgage and loans would be, perhaps, half your take home pay and that is before mortgage rates rise as they surely will soon, without council tax, water rates, feeding your family, running your car and a dozen other things.


Remember also that once you have the mortgage you are stuck with it and won't easily be able to sell the house if you run into trouble.

KingElvis

Taking a loan for a deposit is not allowed and could get you in trouble if you fib about where the money came from.

Mallotum_X

If you cant afford a deposit, you cant afford a house.

And are you really sure you want to be lumbered with a shared equity place?

maninthestreet

busy_mummy wrote: »

..... but 3 months ago we took out an £8000 loan to pay off debts and get a car.

:eek::eek::eek: