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Mortgage Deposit - This is a bad idea, right?

24

Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    The source of deposit needs to be declared. If this is a loan it is not something lenders want.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    RedFraggle wrote: »
    I'm not too sure why you want to pretend it's a car loan? There is nothing to stop you applying for a loan and declaring it at mortgage application as a personal loan with repayments of x-amount per month. Provided you can borrow the mortgage amount with that accounted for then there wouldn't be a problem. Why be fraudulent?
    If you are not actually buying a car, then any "car loan" would be an unsecured personal loan anyway (you wouldn't get a secured loan without actually getting a car) so it is of very little consequence to the lender what you would be spending it on.

    It is of consequence a mortgage lender won't accept a personal loan as a source of deposit. The OP is openly talking about making a fraudulent application for both the personal loan and the mortgage. A pretty moronic thing to do.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    RedFraggle wrote: »
    I'm not too sure why you want to pretend it's a car loan? There is nothing to stop you applying for a loan and declaring it at mortgage application as a personal loan with repayments of x-amount per month.

    Loan applied for. Parents gift money for deposit.

    A little obvious.

    Don't you think that this hasn't been attempted thousands of times before..........
  • RedFraggle
    RedFraggle Posts: 1,450 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    _Andy_ wrote: »
    It is of consequence a mortgage lender won't accept a personal loan as a source of deposit. The OP is openly talking about making a fraudulent application for both the personal loan and the mortgage. A pretty moronic thing to do.


    Sorry, I was talking about the lender of an unsecured personal loan, not the mortgage lender. If it's unsecured, then they generally have little interest in it.
    Officially in a clique of idiots
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    RedFraggle wrote: »
    Sorry, I was talking about the lender of an unsecured personal loan, not the mortgage lender. If it's unsecured, then they generally have little interest in it.

    Not clear what you mean here but as has previously been said, the lender will want to know where the deposit came from. They will be very interested if the loan is the source of the deposit, which is why the OP is trying to find a way round it, and why it would be fraud to claim the deposit is a gift from parents, when really it is a loan.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    RedFraggle wrote: »
    Sorry, I was talking about the lender of an unsecured personal loan, not the mortgage lender. If it's unsecured, then they generally have little interest in it.

    Any personal loan provider will ask the purpose of the loan. If the OP is honest then they will almost definitely decline it.
  • UrWntr
    UrWntr Posts: 227 Forumite
    edited 15 October 2011 at 5:05PM
    ............................................
  • vacheron
    vacheron Posts: 2,364 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Could you not consider taking the loan directly from your parents, (or another relative / good friend who are currently getting a pathetic return in their savings account) and then repaying them in an informal capacity over 12 months with the £500 interest as a thank you to them?
    They would only need to tie up the cash for a year, and unlike many posters you seem to have the right attitude to money and appear willing and capable of repaying it!
    • The rich buy assets.
    • The poor only have expenses.
    • The middle class buy liabilities they think are assets.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    UrWntr wrote: »
    FWIW, I'm actually a decent, normal guy and not a "moron".

    Then why consider trashing your credit record for your entire life just because you want to buy something immediately.
  • UrWntr
    UrWntr Posts: 227 Forumite
    edited 15 October 2011 at 5:05PM
    ..........................................
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