House/mortgage deposit

CJRT

Hi all,
This is my first post and I'm in need of some useful advice please!

So about 2 months ago I bought my dream car, I had saved up around £4000 myself, sold my old car for £4000 and took out a bank loan of £12000 (personal loan). The car is amazing and if I sold it now it would be worth 19,000-20,000 as I got a really good deal.

The issue is..
A week ago I found out that me and my girlfriend are expecting a baby. Unfortunately we had no plans to live together properly until I obtained some money through my work savings plan in 2 years time.

With a baby on the way, and the urgent need to get a house sorted over the next year, I will therefore need to sell my car.

I can afford the monthly repayments on the car plus a mortgage as I have calculated everything to their extremes and I'm confident of this.

My question really is about funding the house deposit. Can I sell my car for the amount stated above and use some of the money for a house deposit even though technically most of the car is funded through my personal loan? Some of the money was savings and some was through me selling my old car so will they take this into consideration?

Also for information last night I applied for a loan and I got an approval in principle, also it's no obligation meaning it won't affect my credit.

What are everyone's experiences with scenarios like this?

I was under the impression that a personal loan can be used for whatever deemed suitable for the applicant, however I don't know if this is the case?

Thanks a lot for your help!

CJ

amnblog

Subject to affordability, sale of the car should work. Use a mortgage broker to be sure.

Thrugelmir

CJRT wrote: »

I was under the impression that a personal loan can be used for whatever deemed suitable for the applicant, however I don't know if this is the case?

The rationale behind saving for a deposit is that it demonstrates an ability to manage personal finances, that people have a discipline. Most people can obtain an unsecured loan of some type as and when they wish.

ACG

There is the odd lender (and im talking 1-2) who does not mind a loan to form the deposit.

However, im sure in this situation it should not be a deal breaker assuming it all fits on affordability etc.