Will this work?

love2love_x

Our buyers have a 5% deposit, they have been told by a financial advisor because there is a property in the background they need to raise a 10% deposit, they are currently applying for a personal loan to increase the deposit to 10%

Does anyone know if this will cause further problems down the line?

betmunch

The personal loan would likely put off the lender they are using, depends who it is though.

With the right choice of lender in the first place you can get 95% LTV with a property in the background. I've had a client complete on the very scenario just last month

love2love_x

That was my thinking, the affordability calculations would surely change. I just wish they had not gone with advice from the estate agents we are using as I don't rate them.

betmunch

Remember their financial advisor is a professional and should not be suggesting a course of action that isn't going to work.

It's quite possible they have already anticipated any problem and have placed them with a lender that will accept a loan as part of the deposit.

love2love_x

Thank you, hopefully it will work out ok.