unsercured loan as deposit?

homer_j_3

why not use one of the 100%+ mortgage lenders but just put your unsecured loan part (the 5% deposit + any more you need for costs etc) over a shorter term like 5 years.

This will avoid any ficticous purchases and will achieve the same goal without having to lie.

regularsaver1

the loan can still bring down how much you can borrow

basically the monthly payment x 12 is most likely to be deducted from your annual salary

PRINCE$$

thanks for all the replies
Regularsaver - yes, we do have money for stamp duty, fees etc.
I guess the consensus is that we should just go for 100% mortgage?
Homer j - Your last post sounds interesting, how does that work? We can pay off 5% of the mortgage over a shorter term??

herbiesjp

Indeed, with some lenders, the unsecured part does not have to have the same term as the rest of the mortgage.

So you could have the main portion running over a 25 year term while the unsecured part is running over a 5 year term. This way as homer rightly says, you are building up that 5% equity more quickly - assuming house prices do not drop by more