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Taking out a loan to cover mortgage deposit???
Wiggly_Worm
Posts: 217 Forumite
OK long story about the whole house thing, but what I'd like to know right now is:
Is it possible to take out a loan (in this case around £7k) to cover the 5% deposit on a mortgage, or would this affect us being able to get a mortgage in the first place? Would it hurt our credit rating?
My hubby is s/e so this would be a self-cert mortgage. We have been advised that a self-cert is possible with a 5% deposit, although 10% would be preferable (so a £13-14k deposit). I have two overdrafts of £1000 each, a personal loan of £1600, plus a credit card. Hubby has one overdraft of £1600 (yes, we were students once), so I don't know how this would stand us with getting a loan anyway. We've considered asking a family member to take out a loan on our behalf, but it would save much angst if we just got the loan ourselves.
Any suggestions?
Is it possible to take out a loan (in this case around £7k) to cover the 5% deposit on a mortgage, or would this affect us being able to get a mortgage in the first place? Would it hurt our credit rating?
My hubby is s/e so this would be a self-cert mortgage. We have been advised that a self-cert is possible with a 5% deposit, although 10% would be preferable (so a £13-14k deposit). I have two overdrafts of £1000 each, a personal loan of £1600, plus a credit card. Hubby has one overdraft of £1600 (yes, we were students once), so I don't know how this would stand us with getting a loan anyway. We've considered asking a family member to take out a loan on our behalf, but it would save much angst if we just got the loan ourselves.
Any suggestions?
:TProud to be dealing with my debts :T
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Comments
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Wiggly_Worm wrote: »Is it possible to take out a loan (in this case around £7k) to cover the 5% deposit on a mortgage, or would this affect us being able to get a mortgage in the first place? Would it hurt our credit rating?
*bump* Please could someone give me even a very quick yes or no? Would getting a loan affect being able to get a mortgage? Anyone, please?:TProud to be dealing with my debts :T0 -
Getting a loan will reduce the mortgage amount available.
Being self employed does not automatically mean having a self cert mortgage.
How long has he been self employed? Does he have accounts?I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Many thanks. We've decided against it now; better to leave such a huge liability until we're better prepared for it, methinks
So, looking for another rented place... :TProud to be dealing with my debts :T0
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