Has anyone ever bought a house on a personal loan then re-mortgaged it?

Old_Git

leestafford wrote: »

There's some cheap flats for sale in my local area for no more than £25,000.

Although I can't get a mortgage, I have been approved for a £25k loan over 5 years paying £490 back per month. If I took out the loan to buy a flat and then I found £500 was a hefty outgoing... would I be able to re-mortgage or get a secured loan for £25k for a much longer period of time for a lower monthly fee.

In effect... a long way round to getting a mortgage!

Let me know if this sounds good or just a crazy idea I've thought of.
Thanks in advance!

can you take the loan over a longer period .What is the interest rate at present

Errata

kingstreet wrote: »

Remortgage of an unencumbered property?

Re as in do it again. Like re-wind, re-play, re-new etc.

kingstreet

Yes. Perversely, it's still a remortgage even if the property is unencumbered.

G_M

Accountants, financial advisers and bankers. Ylitarite the lot of them.

And who was the bright spark who first decided to call the cash a buyer puts up himself a 'deposit'? As opposed to the money paid over at Exchange of Contracts which is called ...... a deposit.

Annisele

G_M wrote: »

Ylitarite the lot of them.

Now I feel stupid. I actually went and googled that word, believing it to be some legalese that had thus far escaped me... Google helpfully suggested a word or two that I might have meant instead.

You don't need to explain, I do get it now!

G_M

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Thanks Annisele - the thought of your mental struggle has made my evening.

Forgive me?

Annisele

Of course; I wouldn't have posted if I didn't think it'd make somebody smile.

You do seem to have come up with a unique mis-spelling though, which surprised me greatly - I'd have thought Google would know an awful lot of versions of that word in particular.

girlycara

Where can you buy a flat for 25k? Ok in hull you could buy a street for that but who would want to live in hull?, assuming you aren't in hull where are you?

misswansea

Beware the consumer credit act!

which says you can't take out a new mortgage for less then £25k

and 100% mortgages are a rare beastie


so if your flat is worth 25K and your chosen mortgage requires at least 10% deposit then you will find yourself asking for a mortgage for £22.5k, which is illegally small, even if your income is enough to cover it.

this is a shame because a mortgage or loan secured on your house should be cheaper than an unsecured deal.

I tripped over this one myself once, solved it by doing massive improvements to get the valuation up to £30k so they would let me borrow £25k. (not a cheap process)

Might be better to shop for a better loan in the first place, start by asking the company offering the 5 year deal if they will consider a longer term.

good luck making the sums add up

Jakg

If your plan is to get a mortgage later - bear in mind if you can't get a mortgage for £25k, your unlikely to get a mortgage for £25k with a £25k personal loan as well.