Should i get a loan as rates are so cheap?

danlightbulb

Ok, so can I legitimately save £1k per month for the next 8 months by saving that in cash into a cash savings account, BUT, use a loan to pay for my rent and bills.

So I have an £8k loan right now. I use that loan to pay my rent and bills.

That means I have £1k left every month to save.

Where has your deposit come from Dan? Ive saved it - here are my bank statements showing the monthly deposits.

Taking a linear view, this is factually correct.

lovinituk

Go for it. Let us know how you get on.

danlightbulb

Well I'd want to know what would happen first lol.

I don't think I would be fraudulent here would I? I'm not lying about anything. The loan would show up on the credit report of course but my affordability would be fine. The solicitor would have his deposit audit trail. Is there anything wrong with it? Perhaps morally there is but its not mistruth.

Its no different really to having debt and savings at the same time. Its also no different to having your parents pay your rent for a while allowing you to save up, instead of giving you the cash directly. I'd imagine that might happen would it not?

lovinituk

Personally I wouldn't be trying to hide anything, no matter how small you think it is. At the end of the day it's not us you have to convince.

glosoli

It might or might not work, I really don't know, but one things for certain, you need to try and get yourself into a positive asset position, anyone could get a credit card and advance £8000 into their savings account and essentially be in the position your in i e breaking even. With a £43k income and no dependants I just can't grasp it.

danlightbulb

glosoli wrote: »

It might or might not work, I really don't know, but one things for certain, you need to try and get yourself into a positive asset position, anyone could get a credit card and advance £8000 into their savings account and essentially be in the position your in i e breaking even. With a £43k income and no dependants I just can't grasp it.

I do have dependants. I left my marriage with a considerable debt position which has taken a few years to put right. My salary has also increased recently due to promotion at work. So I'm in a good position now, but it hasn't always been so.

I'm trying my best to get myself into a positive asset position. Matched betting has helped hugely with that very recently. But I'm very aware that paying down a mortgage will be significantly better for me than renting, the sooner I can get out of renting the better off i will be down the line.

My suggested approach seems to be endorsed by uswitch:

But if you used a credit card to take on more of your living costs, then you could have more cash left in the bank at the end of each month, which you could put towards your savings.

Of course you would need to eventually pay back the debt on the credit card, but if you manage it correctly with the right credit card, you could find it much easier to save money and still pay back your debts.

Source: https://www.uswitch.com/mortgages/guides/can-you-get-a-loan-for-mortgage-deposit/amp/

Pixie5740

Go for it Dan. You seem to have it all figured out and your plan is endorsed by USwitch. What could possibly go wrong. Do let us know how you get on.

Richey_

Erm Dan, Uswitch get commission for selling you credit cards.
I wonder why they are making comments like that..............:D :T :T :rotfl:

danlightbulb

Lol I'm not naive towards u switch, was just using it as an example. I'm a little surprised at the very black and white views here about the subject if I'm honest. There are lots of ways to flex financial tools. Sure I'd like to be debt free and cash rich but I'm not so have to look at other options available. I wouldn't be contemplating this for anything other than a mortgage, because getting a mortgage sooner is better than waiting and renting.

I've just used the HSBC mortgage calculator and the amount I can borrow is exactly the same with or without a £200 per month personal loan added on. It's capped at £212k, I don't want anywhere near this much.

Richey_

Why not just apply and let others know how you get on. Keep everybody updated until the final stage of buying, once the solicitors have done all their parts.

You have been advised strongly about committing fraud and CIFAS markers.

Your life and your choices, a bad choice in my opinion but I am not you and it is for you to decide what's best for you. I would be very surprised if you got it, especially from HSBC as it's essentially a 100% mortgage - but good luck to you