Loan rejected

Dodgysailor

Hi,
My wife and myself are buying a house and in order to get a decent morgatge rate we need to put down 25% of the value of the house as a deposit. As we do not have enough savings to do that, we need to ask for a personal loan of £40000. We thought of asking £25k myself and £15k my wife so we could get a better rate (my wife is in part time employment). Yesterday I applied for the 25k personal loan but it has been rejected. They have told me that because I am married it needs to be a joint application. I have not ask them but do you think that the main problem was that it was a single application but the account provided was a joint one?

My other question is: is it possible to apply for part of the money (as rates are better this way), lets say 10k jointly from our joint account and 15K each from our private accounts which are where each one of us receive our salaries.
Another question is: Is there a problem if we do not say we are married as I think that will hindered our chances to get the loans (as also we do not share the same surname).

andy.m_2

I may have this wrong, but the mortgage company will credit check you, see you have a mahoosive loan and reduce their offer by the same amount.

This puts you back at square one.

Sorry.

intranicity

Also, I don't think that they would except a loan as a deposit sorry

Common_Sense_2

I agree with Andy - any mortgage company worth their salt will ask you your outgoings and will take that into consideration when underwriting your application. If you don't tell them about it, they will see it on the credit search anyway.

Peelerfart

Yup agree with above your plan is a non starter I'm afraid, and please stop applying for loans.

It will look awful to a mortgage lender if/when you do apply,and they see failed loan applications against your name.

Apples2

A £40k unsecured loan is quite simply craziness!

I would hazard a guess that virtually nobody these days would secure £40k between two people. You would both be need to be earning well over £40k each and have no current debts, credit cards (even empty ones) or overdrafts.

without knowing your full circumstances, how on earth are you going to meet the repayments on a £40k loan as well as a new Mortgage??

What savings do you have to contribute to the deposit?

I seriously think you are a million miles away form obtaining a Mortgage.

KingElvis

Have to agree with Apples, if this thread is for real you're just as likely to get a dome on The Moon as you are these crazy loans for a house.

Personal borrowing for deposits is a complete no no and you'll be sussed. If you lie about where it came from (not that that's likely anyway) you'd be in bother.

I would just forget this one and file it under barking mad.

Clive_Woody

Dodgysailor wrote: »

Hi,
My wife and myself are buying a house and in order to get a decent morgatge rate we need to put down 25% of the value of the house as a deposit. As we do not have enough savings to do that, we need to ask for a personal loan of £40000. We thought of asking £25k myself and £15k my wife so we could get a better rate (my wife is in part time employment). Yesterday I applied for the 25k personal loan but it has been rejected. They have told me that because I am married it needs to be a joint application. I have not ask them but do you think that the main problem was that it was a single application but the account provided was a joint one?

My other question is: is it possible to apply for part of the money (as rates are better this way), lets say 10k jointly from our joint account and 15K each from our private accounts which are where each one of us receive our salaries.
Another question is: Is there a problem if we do not say we are married as I think that will hindered our chances to get the loans (as also we do not share the same surname).

Assuming you have got some sort of deposit to put down, hopefully around 10%, you would probably be better off getting a mortgage for the remaining 90% as mortgage rates are generally a lot lower than loan rates, then look at making over-payments. As everybody has already stated the chances of a £40k loan seem very unlikely.

Go and have a chat with an IFA to discuss your options.

Dodgysailor

Thanks all for your replies. I guess the loan is now out the table.
Andy we thought about what you are suggesting but the rates for the Mortgage only option were quite high (around 6.89% for the first 5 years) whereas the option Loan-smaller mortgage implied a similar rate for the loan for 7 years but only for the amount borrowed (£40,000) plus the mortgage rate at around 2.5%.

jonjamie1970

Dodgysailor, in my opinion you are nowhere near a mortgage and a disaster waiting to happen, £40k loan on top of £120k mortgage will be very high repayments, particularly on the loan which will end up a bigger monthly payment quite possibly than the mortgage itself. As others have said, no lender I'm aware of would provide this sort of lending these days as its irresponsible.

CHR15

Are you suggesting you would need a 100% mortgage?
If so, you would be lucky. They simply don't exist.

Do you have any deposit of your own money?