Mortgages and Loans

Lee712

I know it's not ideal to use a loan as a deposit for a house, but what are your thoughts on using a loan to pay for a holiday and then using the money you were going to use for the holiday as a deposit for a house.

I know it's very similar to using the loan for a deposit, but we've booked a holiday over a month ago and then a house that's perfect for us has just come up.

Thoughts?

Dan:_4

I wouldn't get a loan if you are going to be applying for a mortgage.

ViolaLass

The bank will generally look at your net situation, rather than how much money you have in the bank i.e. you're not the first to think this and they're not stupid.

ACG

What you say and how an underwriter interprets it can be very different.

If an underwriter sees a loan hitting your bank account just before you make an application for a mortgage - what do you think they are going to think?

99% of lenders do not allow loans to form your deposit, there is the odd lender who may accept it... but im talking 1 or possibly 2 at most.

Lee712

Thank you.. and yes I do agree.

We are know thinking of cancelling the holiday (losing £600 deposit) but saving £2400 to put towards the house deposit/fees.

We are first time buyers at the age of 26, and were trying our best to do all of our research and get to know the ins and outs of buying a house etc.

Is it correct that if we put an offer in for a house say next week and it's accepted, have we got until the papers are signed and exchanged to save/gather the deposit/fees?

For example an extra 2 months from the offer being accepted?

The reason im asking is because we want to make sure we have enough money behind us before moving in....

Zoology_Dragon

We were asked for proof of deposit within two weeks of having an offer accepted. And three weeks since offer accepted we've already paid out close to £1000 in fees.