A loan for a partial deposit?

hankkosovo

I have read the other thread where the guy asked the same question but our situations are quite different so I thought it would warrant its own thread.

Myself and my partner are looking at buying a house, as mortgage repayments are the same as rent in our area. I have been speaking to a mortgage advisor and was advised that we'd be eligible for a 95% mortgage, so we found a house that the owners are desperate to sell (due to relocation), so much so that they've lowered the asking price £15k below the going rate. They're new build terraces so I was able to check sales records of exactly the same house, and they sell for at least £15k more than this house is listed for. Basically it's a deal.

Unfortunately when we proceeded with a mortgage application, we where only offered 85%, so being £10k short, we forgot it. However, the estate agent phoned today to tell me that the sellers will accept £7k below there asking price, so £22k (or about 18%) below the going rate which is why I'm here asking your opinions on getting a £10k loan to make up our deposit short fall.

So what are your opinions?

ses6jwg

It against the t&cs of most unsecured loans to use them for property purchase

Thrugelmir

hankkosovo wrote: »

as mortgage repayments are the same as rent in our area.

House ownership incurs more cost than merely paying the mortgage.

If you can afford a loan for the deposit. Keep saving instead.

Reducing house prices suggest that the market locally is falling. Don't base your judgement on what prices were.

Annisele

Any seller offering an unrelated purchaser 18% below the "going rate" knows something the purchaser doesn't...

However, even without that, you'll probably find that taking a personal loan reduces the amount a mortgage lender is prepared to lend you - you'd now have an extra financial commitment, and so be less likely to be able to afford the mortgage.

Was the mortgage adviser you spoke with a whole of market broker? Are you confident you won't be able to get a 95% mortgage elsewhere?

hankkosovo

Thrugelmir wrote: »

House ownership incurs more cost than merely paying the mortgage.

I should clarify, the entire cost of home ownership is the same as the entire cost of renting, in fact, slightly less.

If you can afford a loan for the deposit. Keep saving instead.

Thrugelmir wrote: »

Reducing house prices suggest that the market locally is falling. Don't base your judgement on what prices were.

These prices have remained at the value I stated since 2008, the last sale on record being 2011. They have dipped and sized slightly, but have always been at least £22k more than what this current house is.

hankkosovo

ses6jwg wrote: »

It against the t&cs of most unsecured loans to use them for property purchase

What if we lied?

CLAPTON

the mortgage compnay will ask where the deposit comes from and generally do no like the deposit to be a loan

and they make their mortgage offer taking into account that you have a 10,000 debt

hankkosovo

Annisele wrote: »

Any seller offering an unrelated purchaser 18% below the "going rate" knows something the purchaser doesn't...

This is what I thought, something was obviously wrong with it, however on two viewings, I have found nothing. Their story also checks out.

Annisele wrote: »

However, even without that, you'll probably find that taking a personal loan reduces the amount a mortgage lender is prepared to lend you - you'd now have an extra financial commitment, and so be less likely to be able to afford the mortgage.

This is what I was worried about.

Annisele wrote: »

Was the mortgage adviser you spoke with a whole of market broker? Are you confident you won't be able to get a 95% mortgage elsewhere?

Yes and yes.

Thrugelmir

hankkosovo wrote: »

I should clarify, the entire cost of home ownership is the same as the entire cost of renting, in fact, slightly less.

I suspect my definition is different to yours. Mine would include all the costs that owning a property for 20/30 years incurs. Not just day to day expenses.

opinions4u

hankkosovo wrote: »

What if we lied?

Do you commit fraud regularly, or only in relation to one of the biggest financial transactions in your life?

_Andy_

Oh great, another fraud thread. Haven't had one of these for a while. Always the same
"Is this possible?"
no
"ok what if I committed fraud"

Duh.