Can you take out a loan to fund a deposit?

MikeR71

somethingcorporate wrote: »

Most of it needs to be paid in cash, as it is all added to your solicitors bill.

Have you considered a super balance transfer card? This is a way of getting cash from a credit card.

carameline wrote: »

I've never heard of one of those sc, what is it?

But a balance transfer card is also another way of getting a loan. Don't many mortgage lenders do a final credit check before they release the money? If so they will find you have new debt which wasn't in the original application to base affordability. Thus they may pull the mortgage last minute! or am I wrong?

On another thought, isn't overdraft considered clear funds? Can you obtain an overdraft from your current account and pay the solicitor fees with a cheque? But anyway, the problem of last minute credit check remains.

_Andy_

There is also the problem that if you did get a personal loan for it, I doubt you'll find many (if any) personal loan providers who will lend money for that purpose anyway.

somethingcorporate

carameline wrote: »

I've never heard of one of those sc, what is it?

http://www.moneysavingexpert.com/loans/cut-loan-overdraft-costs

Have a look here. ^^

holly_hobby

_Andy_ wrote: »

There is also the problem that if you did get a personal loan for it, I doubt you'll find many (if any) personal loan providers who will lend money for that purpose anyway.

Another good point Andy.

Possibly the scheme mentioned by EMac. may be of use, but I have to be honest, I don't beleive in recommending 100% lending unless there is real scope for the individual to reduce the borrowings and put some daylight between the value and os mge. Which with increased household commitments, such as a higher mge, and new family addition, may be easier said than done.

But we can only guide without the benefit of a financial assessment - so only the OP (and their broker) will really have a handle on what is realistic and manageable both over the medium to long term.

My worry is that they move into the house, with essentially 100% borrowing and 18mths down the line want to move again - and round and round we go.

Anyhoo, hope comment and thoughts have helped them make a decision ....

Perhaps EMac could advise the OP (if they wish to pursue this line of enquiry regardless) whom the noted provider is, in case the OPs broker is unfamiliar with the scheme mentioned.

Hope this helps

H

carameline

Thankyou for all your replies

Holly I do get why you're saying. However I know we would manage affordability wise as our current mortgage is for 112k on my wage alone. My husband earns approx 20k and we would only need to increase the mortgage with Halifax by a maximum of £20k. Do you know what I mean? We wouldn't be moving again in a hurry- we just ended up with a larger family than we envisaged :-)