ftb loan , dont know who to turn to

bodmil

Don't do it. You are indeed very naive.... if you have to lie about what a loan is for, it means you shouldn't be using it for that purpose! There's really no rush to get into the biggest debt of your life, there will be other houses. By saving up and waiting until you enter a higher wage bracket, you will be able to afford a better mortgage with better rates and buy a nicer place with more potential to increase the value. It's win win.

jamesd

scotsbhoy1 wrote: »

im not sure about the mortgages in england but here, using a loan for a deposit is fine, as long as you dont say your using the loan for a deposit on a house in the actual loan application.

That's both mortgage application and loan application fraud. It'll also fail because:

1. The mortgage lender will see the loan application in a credit check and the deposit and ask you to explain it and prove that you had the money before the loan.
2. Your solicitor will want to know the source of the funds for the deposit.

To borrow a deposit you should ask your father to borrow the money, give it to you (as a gift, not a loan) and then you can pay it back over time. This is also not strictly correct but it has the merit of your father saying gift so it's not fraud even if you subsequently choose to pay it back.

Borrowing more than half of your income on a personal loan is hard to do. It's above the limit for most places.

bouncydog1

OP - all people on here are trying to do is make you realise that you cannot afford the lifestyle you are seeking on what you are earning.

You need to do a full budget of income and outgoings and this is what lenders will look for when considering whether or not to take the risk in lending you money.

There is a very useful link on the debt free board, that will help you ensure that you don't miss anything. On your car for instance, there is insurance, MOT, fuel, servicing costs, plus a set aside for emergencies e.g. burst tyre.

On the household side it is easy to under-estimate what everything is going to cost - the living expenses side of things comes as a huge surprise to a lot of people when moving into their first home, regardless of their age. Years ago I used to deal with FTB mortgages - the best application I ever dealt with involved a couple who had been together since early teens, and had both worked two jobs saving every single penny they could to get their £30k deposit together. Banks were falling over themselves to lend because they had proved, even though they were on low pay, affordability.

Until you can prove to the lenders that you can get out of your overdraft and save at least the cost of the mortgage plus car payments each month and a margin for living expenses (presume you currently live at home with parents so these costs will currently be low) you are on a no-brainer.

opinions4u

scotsbhoy1 wrote: »

.ive crunched my numbers again and again and i can afford it.

In that case, you can also afford to save a deposit.

i work in the shipyards you see, currently on the aircraft carriers being built,so my jobs basically secure for the next 9 years.

Unless they switch the contract to Japan, South Korea, Italty etc ... or cancel and share one with the Germans (oh the irony).

im not including my overtime that im pretty much guaranteed

Wise, as when employers wish to cut back, without the expense of redundancy, overtime is a good starting point.

its just i dont want to, its a rip off

It's the going rate for a personal loan these days. Mention that it's for the deposit for a house - then they'll tell you that you can't have one at all.

few points ... i live in scotland so dont need to pay for water and im not sure about the mortgages in england but here, using a loan for a deposit is fine, as long as you dont say your using the loan for a deposit on a house in the actual loan application.

Lying to obtain credit is a criminal offence. Even in Scotland. While the most usual "punishment" is to be declined, other possible outcomes are a CIFAS record that sticks with you for years or a prison sentence.

Stop thinking about debt to obtain debt. Save this £1,050 a month you say you can afford. Prove to yourself that you can afford all your likely home ownership costs by sticking it in a savings account. If you can afford so much, why the hell are you overdrawn?

- save
- pay your bills on time
- stop messing about with credit you don't need
- don't assume your job is always going to be safe
- don't assume your overtime is guaranteed
- don't assume your mortgage payments will always be as low as they would be today

At present, you are naive bordering on criminal. Time to start growing up.

DCFC79

Just save up, you seem to be in a well paid job. Are you desperate to move out ? Have you by any chance told your parents of your plan thats got more holes than swiss cheese and whats they're opinion on it ?

They would be intrigued as to where you got the money from so they would ask and you might slip up and tell them.

iolanthe07

using a loan for a deposit is fine, as long as you dont say your using the loan for a deposit on a house in the actual loan application.

I can't believe I've just read this! And I'm not sure about these aircraft carriers ever being built. The costs are escalating, and apparently smart satellite guided missiles are being developed which, in the event of war, would render them extremely vulnerable. Sadly, some defence experts think they will soon be as obsolete as battleships.

ViolaLass

There's also the point that having a loan for for half your income will severely impact what the bank will be prepared to lend you, even if you lie about the source of your deposit.