Loan to top up mortgage deposit?

dazanteney4

I have to admit I'm struggling to agree that's mortgage fraud, when you have a personal loan its your money to do what you want with...

Foxy-Stoat_3

Its more where the money actually comes from, say someone "gifted" you all the money but in reality its a loan and you have to pay it back, proves they can't save.....if the OP has a good sized deposit and like they say "topping it up" then who knows....unless they only have 4% deposit and hope to get the magic 5% for the HTB scheme but taking out a loan....if thats the case its best that the lender rejects this one !!

GMS

dazanteney4 wrote: »

I have to admit I'm struggling to agree that's mortgage fraud, when you have a personal loan its your money to do what you want with...

The source of deposit needs to be declared. If the answer is given incorrectly and knowingly so then it is fraudulent.

dazanteney4

GMS wrote: »

The source of deposit needs to be declared. If the answer is given incorrectly and knowingly so then it is fraudulent.

So a parent could take it out for you then give you the money as a gift?

jacobtheamish

Another option would be to invest in a Dolerean with Flux Capacitor, go back to 2007 and apply for a mortgage with GMAC

jacobtheamish

dazanteney4 wrote: »

So a parent could take it out for you then give you the money as a gift?

Yes, providing the lender accepts gifted deposits. They are unlikely to be fussed where your parents got the money from providing its not laundered.

Foxy-Stoat_3

dazanteney4 wrote: »

So a parent could take it out for you then give you the money as a gift?

If the parent isn't going to accept any repayments for the loan then yes, its a gift....if you can afford the repayments though then this won't be a problem as the lender won't want to see your outgoings on a monthly basis.

StuC75

The loan payments will just be taken off for affordability calulcations since it becomes a commitment.. A big factor for it is deceitfull or not is the amount of time there will have been since taking out the loan and applying for the mortgage..

If its 3-6 months - then you could say it was for a different purpose and theres very little that could be done.. whereas if it was a week before then its difficult to explain it as anything other than topping up the deposit.. always best to avoid big purchases whilst buying a house anyway...