Loan to help with deposit? Should We ?

vk1982

Yeah we did consider selling and re-purchasing and this is maybe a route we'll need to go down as I definitely don't want to go to jail! lol

GwylimT

If you could afford the loan repayments why don't you put that amount of money away each month.

Speak to whoever bought the car for you and say that with their blessing you would like to sell the car to put towards a deposit on a house and buy a cheaper car.

vk1982

GwylimT wrote: »

If you could afford the loan repayments why don't you put that amount of money away each month.

Speak to whoever bought the car for you and say that with their blessing you would like to sell the car to put towards a deposit on a house and buy a cheaper car.

Thanks for your reply. Yes we can afford the monthly repayments as our mortgage deal (5years) has just dropped dramatically. So our plan was to start saving for the next 3-5 years but I just had this thought that we could do it quicker this way.

poppasmurf_bewdley

You don't need 2 posts for asking the same thing. I suggest you remove this one as it only has one other reply, and keep your other one.

somethingcorporate

Unfortunately it's against the rules so you'll have to do it the old fashioned way.

longtermplanner

do you need to buy a more expensive house? If you only need one that costs what your current house does (eg if you are moving to a larger house in a cheaper area), then if your current mortgage is portable, you may be able to do this.

Otherwise I suggest you sell the car and buy a cheap older car from a reliable make (think Japanese) to get your deposit. And if that isn't enough, then start saving up (or overpaying your mortgage).

Thrugelmir

Plough whatever you can into repaying the existing mortgage quicker. If moving house is a priority. Then economise. Holidays, birthdays, the lot. No one will object if there's good enough reason.

Caz3121

the question will not necessarily be "what did you spend your loan on" but it will be "where did your deposit funds come from?"
if you say a loan then your application may be rejected
if you say anything other than that, you would be lying

Nice_Weather_For_Ducks

vk1982, lenders are not stupid these days!!

27col

My wife offered to lend my son the deposit for his house. The B.S were most insistent that it had to be a gift. In fact the specific question was asked, "is the deposit a gift or a loan" and if it were a loan, then he would not get a mortgage.
I am fairly sure that she had to declare that it was a gift.