Can I use a personal loan to buy a house

andyuk21us

Can I use a personal loan to buy a house i have been accepted for the loan already I borrowed 10k it was so posed to be for a car but I am buying a house I am a cash buyer all I needed is 6k from my loan money I am thinking the bank might stop payment

dealer_wins

Depends if they find out your falsified your loan application really.

lee111s

There's no mortgage.

I don't think it's fraud. You are indeed allowed to change your mind and buy a car for 4k instead of a car for 10k and then simply use the rest of the money however you wish.

If you are really concerned, inform the loan provider of your intentions.

marco806

of course you can.

Thrugelmir

Nothing to stop you using the cash for whatever you like.

jonesMUFCforever

I disagree.
Banks do not lend on personal loans for purchase of land or property.

Having said that if the money has already been drawn it is unlikely that they will check how you spend it - just make sure to make all the repayments on time.

notanewby

jonesMUFCforever wrote: »

I disagree.
Banks do not lend on personal loans for purchase of land or property.

Or for buying/starting a business. That's another thing they don't like you doing with the money.

fallen121

Either the house cost £6k in which case it sounds like a repossession in a really dodgy area or an abandoned croft with no roof, or you are using £6k in addition to cash/mortgage you already have.


If you already have a mortgage, then why the extra £6k needed, is this for home improvements rather than actually buying the house?


If you are buying the house for cash, then why did you need a £10k loan for a car?


I feel we're only getting part of the story here.

forgotmyname

Using a loan for the deposit?

fallen121

OP said "I am a cash buyer" when referring to the house purchase.


Cash buyers don't normally need a loan to fund the deposit. Unless they are waiting to sell another house of course.


We could speculate forever!

kloana

Property purchase is one of the purposes that personal loans usually disallow (along with gambling purposes, illegal purposes, and so on). However, them finding out your true purpose is incredibly unlikely.