Can you buy a house using a personal loan?

Dogz111

I'd had an offer accepted on a Repo and need to exchange contracts quickly


In order to expedite the process I was wondering if its acceptable to secure a personal loan to buy property? I would borrow the maximum £25k. Personal income wont be an issue and neither will other debt as I have none.


Does the loan underwriting process negate them from lending to buy a house? The loan will be used along with savings to make up the purchase price


Also, as rates are set to rise in the imminent future and given a loan is at a fixed rate (c4.3%) this possibly seems a prudent way to progress. I'll also avoid all the hassle and fees which go with getting a mortgage which also must be a plus


Thanks,


Thanks in advance

Talc1234

Assuming that you could use the loan for a very expensive holiday or blow it on anything you wanted, I shouldn't image that buying a property with it would be a problem.

Also if you default they can't repossess your house

dickieg

I brought an house at auction the once and had to have £11500 loan, I had no problems as it would of only been like having a loan for a car. I cant see you having a problem as the same would apply here (albeit the price of a DBs car), As long as the money is in your account, and is there legally, id say no problem. The other way they will look at it is an house is a decent asset to have to sell if the worse comes to the worse and you cant make the repayments

booksurr

many mortgage lenders will not grant a mortgage for less than £25k anyway so if that is all you need your only option may well be a personal loan anyway

harrys_dad

I would be very surprised if you could get an unsecured loan at 4.3%. Loans that are secured on property are cheaper for obvious reasons (and usually called a mortgage ).

jjlandlord

Talc1234 wrote: »

Also if you default they can't repossess your house

However, they could bankrupt OP, in which case the property may be sold...

Evans-Southall

Hi There,

(First ever post on an actual forum)

I am getting married in September and have saved £12k, (the amount I need for deposit and fees on help to buy 2 scheme).

I wondered if it is possible to take a loan for £10k to pay for the wedding and then use the £12k saved for the deposit on a house?

The loan should be easily affordable as my Girlfriend and I have a good combined income.

harrys_dad

Have a cheaper wedding and spend the money on furniture.

G_M

harrys_dad wrote: »

Have a cheaper wedding and spend the money on furniture.

Get furniture off freecycle and spend the money on renovation.

ging84

why wouldn't you be able to take out a loan for a wedding?

however i would be warry of borrowing a large amount of money at any stage before completion, they can withdraw your mortgage offer