personal loan to buy house

ellene

I am moving house and have the bulk of purchase price from house sale but am a bit short can i make up the shortfall with a personal loan or is that fraud.
Would appreciate any advice - thankyou.

Loopy28

You aren't allowed to use a loan, however, if you have shortfall then why not get a mortgage for the term that you would have got the loan for anyway? With your LTV you will get a cheap mortgage rate compared to a loan.

Thrugelmir

Not fraud. As there's nothing to stop you obtaining a loan. What matters is the lenders view and the impact of the loan on affordability. Along with adopting a responsible lending policy.

amnblog

Technically you can do this.

In practical terms the affordability may not fit.

You need some flexibility in your lender selection so consult a broker.

ellene

Thank you all, I am over 70 and haven't been able to get a mortgage.
All the personal loans I've tried say you can't use it to pay for a house. I wondered if I didn't tell them what it' for and just payed that part of the purchase straight to the owner whether that would be fraud.
I looked at equity release but it was cruel
My family would also give me their version of equity release i.e they would lend me the mony to be paid back with interest on my death which is very kind of them but I'm just eploring ways I could stay independent.

audigex

You can't Borrow the money off your family, buy the house

Then your family tell you that they actually need the money back.

Take out the loan and pay your family back with it.

Ta-dah. You've taken out a loan to pay back your family now that they can't afford to lend you the money, you haven't borrowed to buy a house

ellene

Thank you audigex, not quite sure how that would work without actually borrowing family money to give back if you see what i mean but it's a very good thought.
I also read this
"Some lenders label their loans as car loans, or home improvement loans, but you can spend the money how you wish. "
but worry I'd have a problem if they found out it was part of a house purchase.

ellene

I have just spoken to someone who's up on this sort of thing and he says it's not fraud so now I'm even more confused

xHannahx

They don't check what you spend it on so don't worry about it too much.

Home improvements might loosely fit the bill, as you are improving your home- by buying a new home better than the old one!

audigex

ellene wrote: »

Thank you audigex, not quite sure how that would work without actually borrowing family money to give back if you see what i mean but it's a very good thought.
I also read this
"Some lenders label their loans as car loans, or home improvement loans, but you can spend the money how you wish. "
but worry I'd have a problem if they found out it was part of a house purchase.

It depends on the specific terms and conditions. Often the loan will be marketed for a specific purpose, but is really just a general purpose loan... you can use them for whatever you like, they're just tailored towards certain uses (eg 3/4 years of repayments for car loans, to match the dealer offers)

If it states in the terms and conditions that you can't use it for purchasing a house, though, then it would be fraudulent to use it for that purpose.

Make sure you check, but yeah there's nothing stopping you using a general purpose loan for anything you like, as long as you don't lie when taking it out. Of course, you could always state that it's for home improvement: "I'm using it to buy a new kitchen" - you just don't have to state that that you mean the entire kitchen, including walls....

ellene

audigex not sure I can pull that off