When to apply for Home Improvement loan

venster

Hi.

Just started my mortgage 2 months ago (90% ltv with Santander) and part of deposit was funded by a loan from a friend.

I'd like to pay friend back asap and plan on using a loan to do this, ideally using a home improvement loan and take it out over duration of mortgage and consider it part of the mortgage.

How soon would be sensible to do this and would it be wise to tell them what it's for, or make something up?

Financially I budgeted for this so affordabaility isn't an issue with me..... So do they do the usual affordability/credit checks etc..?

Thrugelmir

If you've a 90% LTV unlikely that Santander will consider further lending.

You need to build some more equity up in the property.

Suggest you start paying your friend a little every month.

venster

Thanks for your reply. Not really what I expected to hear.

Excuse my ignorance, and you probably know what your talking about more than I do, but I'm not actually wanting to increase the mortgage. I want a secured loan against the property.

I remember when I was with Northern Rock, I had the mortgage and a secured loan running simultaneously. The loan would be equivalent to 5% of value of property.

Would it not just come down affordability ?

GMS

You will not get an additional loan over and above 90% LTV from Santander or anybody else.

Did you declare the deposit to Santander as a loan when you bought the property?

venster

Santander were happy to fund the deposit with loan, however I didn't take that option and borrowed from a friend instead.

Not sure I'm getting my point across. I don't want to increase my mortgage. I want a loan to repay some money that was used for the deposit. I assumed a HIL would be the cheapest option - rather than a personal loan....

Wh05apk

A hil will be secured, and you will not be able to do that over 90% ltv, your only option would be an unsecured loan if your friend wants repaying.

betmunch

venster wrote: »

Santander were happy to fund the deposit with loan, however I didn't take that option and borrowed from a friend instead.

Not sure I'm getting my point across. I don't want to increase my mortgage. I want a loan to repay some money that was used for the deposit. I assumed a HIL would be the cheapest option - rather than a personal loan....

I dont think your getting the point here at all.

Santander will not offer you a home improvement loan secured on the house

Other Secured loan lenders will not offer you a home improvement loan secure on the house.

Your asking for a home improvement loan which is to pay back a debt to a friend so your asking to commit fraud.

you have used a loan from a friend to fund your deposit and not told your lender so you have already committed a fraud.

Due to this you are not likely to get much help on this forum, we're very anti fraud here you see

venster

Listen mate, I did not commit fraud. I suggest you choose your more words carefully.

I went through an established broker who suggested the Santander because at the time they were happy to give me a mortgage whereby the deposit could be funded by means of a loan. It was based on affordability. My personal circumstances meant I was not able to save for a deposit, this was the only way I could get a mortgage. All I'm asking now is for the loan, after, I've got the mortgage.

You know what, I came on here for advise. I wanted to know how long would be a suitable time gap before asking for the HIL and whether I should be honest for what it's for. It's not for a car, holiday or for committing fraud.

Quite frankly I'm happy to get my advise elsewhere with your attitude and libellous comments.

By the way it's you're and not your.

betmunch

venster wrote: »

By the way it's you're and not your.

Good point well made.

You admitted to lying on your application about the source of your deposit. What is that if its not fraud?

lazer

venster wrote: »

Listen mate, I did not commit fraud. I suggest you choose your more words carefully.

I went through an established broker who suggested the Santander because at the time they were happy to give me a mortgage whereby the deposit could be funded by means of a loan. It was based on affordability. My personal circumstances meant I was not able to save for a deposit, this was the only way I could get a mortgage. All I'm asking now is for the loan, after, I've got the mortgage.

You know what, I came on here for advise. I wanted to know how long would be a suitable time gap before asking for the HIL and whether I should be honest for what it's for. It's not for a car, holiday or for committing fraud.

Quite frankly I'm happy to get my advise elsewhere with your attitude and libellous comments.

By the way it's you're and not your.

betmunch wrote: »

Good point well made.

You admitted to lying on your application about the source of your deposit. What is that if its not fraud?

Read above bits on bold - they didn't lie on the application

DannyboyMidlands

Surley if you take a home improvement loan and give it to your mate then that would be fraud?