Hi, Personal loan for un-mortgageable auction property?

Jack_Johnson_the_acorn

jonesMUFCforever wrote: »

In general banks will not lend for property transactions on an unsecured basis so I would consider taking the money from parents and paying them back.
Again though we need to know why the property is unmortgageable.
Is it a case of being too good to be true?

Because there is no management company at present... No-one is responsible for the upkeep of the building. It should be sorted by November.

LovelyLeeds

Jack_Johnson_the_acorn wrote: »

Are we likely to be successful for a joint loan of £20k-£25k. I don't want to apply and be rejected as it might affect our credit ratings.

How much credit do you already have available? If you have excess credit which you don't use, you could cancel the card(s) which will free up available credit. Not sure this would be enough though, to convince a lender.
An unmortgageable property could prove very hard to sell if you decided to move.

Jack_Johnson_the_acorn

LovelyLeeds wrote: »

How much credit do you already have available? If you have excess credit which you don't use, you could cancel the card(s) which will free up available credit. Not sure this would be enough though, to convince a lender.
An unmortgageable property could prove very hard to sell if you decided to move.

Been approved for £20k on my own over 5 yrs.

mc33033

Jack_Johnson_the_acorn wrote: »

I was accepted for a £20k loan on my own today although the rate was a bit steep @14.9% APR this was with Santander. Means over 5 years I would repay £27k was expecting more like £25k. But due to my age I am considered high risk (25)

That's not too bad although more like 28.5k rather than 27, the apr no doubt represents the risk. Out of interest did you tell them exactly what it was for?

mc33033

Jack_Johnson_the_acorn wrote: »

Because there is no management company at present... No-one is responsible for the upkeep of the building. It should be sorted by November.

If it is sorted and it does become mortgageable then you can look into paying off the personal loan early by taking out a mortgage @ significantly cheaper rate.