Can I Borrow an Unsecured Loan to Pay My Deposit on a House Move???

digmoorskipper

Recently me and my partner had our 3rd child and as a result we need to move from our current 3 bedroom home into a bigger 4 bedroom house.

Our home is on the market and we have found a perfect new home which is ideal for our needs and is also a repossession meaning the sale price is much lower than the norm.

However.......as this is a fairly recent decision and the fact we are both in our early 30's Savings are none existent. I am on a good salary and have a sufficient credit rating to obtain a personal unsecured loan to cover the deposit but I am being told that this is not an option as "in theory" this would constitute a 100% mortgage!?

How can I overcome this, as we will miss out on the home of our dreams otherwise!?

sirmosh

Even if the lender finds borrowed money acceptable as a deposit the repayments will severely impact how much they will consider affordable for your to borrow so you may find it hard to get a mortgage based on affordability.

marliepanda

Do you have equity in your current place? Surely if youre bringing money in from that it wont be a 100%?

Thrugelmir

digmoorskipper wrote: »

How can I overcome this, as we will miss out on the home of our dreams otherwise!?

Unfortunately life has choices. You've opted for kids.

Otherwise I would have said overpay your mortgage and build up your equity.

digmoorskipper

I have equity but only a few thousand, however houses are not selling very fast in this area and I have had to consider a renting option, which would negate any equity the house has.

I could comfortably cover the costs of the mortgage plus the loan and with the house being so cheap it will be worth much more than its current worth in a few years so I could remortgage and clear off the unsecured loan.

sharpee

Do you have any savings? How are you going to pay for Solicitor fees, Estate Agent fees, removal fees etc?

poppy10_2

digmoorskipper wrote: »

Recently me and my partner had our 3rd child and as a result we [STRIKE]need[/STRIKE] want to move from our current 3 bedroom home into a bigger 4 bedroom house.

Fixed that for you.

You can't afford it. Should have started saving before you popped another sprog out if you wanted a bigger house. Forget it.

SingleSue

Is there no way you could fit the children into the 3 bedroom house? I have 3 children and two share with one having a bedroom of his own.

If a bedroom is small, bunk beds are a possibility. This would then give you the chance to save a little more or for house prices to possibly improve (I know, was that a blue pig jumping over the moon?) :rotfl:

InMyDreams

SingleSue wrote: »

This would then give you the chance to save a little more or for house prices to possibly improve (I know, was that a blue pig jumping over the moon?) :rotfl:

If you want to upsize, you actually want prices to drop. So you might be lucky if you wait a bit and save :j

angelfire

In order to even view a reposession, you need to be proceedable within 28 days, seeing as you are not, your idea is dead in the water. That said, please keep us updated as i'd be interested if you can find a way around this...