APR madness!

InsideInsurance

The chosen reason for the loan - which obviously must be correct otherwise potentially fraud - can impact both APR and other terms of the loan. For example some lenders wont allow a "holiday" loan to be over 12 months term.

As has been said, when you are going for a mortgage you need to show where the monies has come from for the deposit and if you're borrowing it to get it you'll almost certainly get declined for the mortgage even if you find a loan you're happy with.

Rafter

Make sure you do your sums. You might be better off with a higher loan to value loan with lower deposit than paying a high rate like this... and as others say - regardless of whether you say you want the money for a car or house deposit, any mortgage lender who checks your record will reduce the amount they will lend you if they can see a lot of unsecured debt you have to service as well as your mortgage payment.

Good luck

R.

KingBeastie

Thanks.
I got my current mortgage 5 years ago, it was a 100% mortgage.
I also took out a loan at the same time for furniture, electricals, etc. (I was a first time buyer). So I think this has resulted in confusion on my part. Also as I said I never thought of giving an incorrect purpose as fraud, which I certainly would NOT want to do.
I've never missed any payments on my loan (which is about to finish) or mortgage and earn a lot more now than I did then. It's not an area I am very familiar with so guess I was basing things on previous experiences.

Thanks for the replies.

somethingcorporate

It's a considerably different world from 5 years ago.

KingBeastie

Yeah very much!
Like I said too, mortgages, loans, etc. are not really something I deal with on a regular basis, very glad I asked a few questions first!

tonkinator

Well done for taking the sensible approach KingBeastie!

Bravehearted_2

Conrad wrote: »

Loads of people have used loans as deposits down the decades. Illegal - everyone breaks the speed limit every day - I'd say that's a worse offence with more harm potential.

This, from a mortgage advisor??? :eek: I'm flaggerbasted.

Please provide hints of where you work, so people know to avoid your clearly in my view, incompetent advice.

iolanthe07

Bravehearted wrote: »

This, from a mortgage advisor??? :eek: I'm flaggerbasted.

Please provide hints of where you work, so people know to avoid your clearly in my view, incompetent advice.

Nothing flaggerblasting about it, sadly. A mortgage advisor advised the son of a friend of mine to lie about his income on a mortage application-one of those where you assess youself and don't need proof. He went bankcrupt about four years later.

zxspeccy

Ultimately a very good decision by the OP..... usually they don't like hearing the advice we give if it is not what they want to hear in the first place.

Unfortunately some people think lying on loan application forms is a victimless crime. It isn't and it is certanly not worth the hassle in the long run. Especially as these type of people come on this forum and claim they have been "mis-sold" a loan they can't afford, and blame the bank for agreeing the loan.

Two thumbs up for the OP for seeing sense.

KingBeastie

Thanks.
I can assure you it never crossed my mind that is it was fraudulent.
And as I have said I think my previous experiences influenced my understanding of the entire situation.
Very glad I asked the questions I did. Or more importantly I got the replies that I did!