Buying a house with a personal loan??

Bossypants

sparky130a wrote: »

You're on crack right?

Not last time I checked, no. I asked a question in good faith, was hoping for a reply along similar lines.

sparky130a

Bossypants wrote: »

Not last time I checked, no. I asked a question in good faith, was hoping for a reply along similar lines.

Do you know what? You win.

I can't be arsed anymore.

Bossypants

sparky130a wrote: »

Do you know what? You win.

I can't be arsed anymore.

Okay then.

OP, given that Sparky is unwilling to state their position beyond implying that we are stupid for not already knowing and agreeing with it, I suggest you be transparent with your lender and see what they say. It's the only way you'll know for sure, in any case.

bob_bank_spanker

Bossypants wrote: »

Okay then.

OP, given that Sparky is unwilling to state their position beyond implying that we are stupid for not already knowing and agreeing with it, I suggest you be transparent with your lender and see what they say. It's the only way you'll know for sure, in any case.

Sparky now purports to know the ins and outs of commercial financiers. As well as knowing more about tax than tax accountants (another thread)

troll sad

Thesimdude

Hi there,

First, don't let people call you mad for considering a BTL. So long as you have considered the risks and are happy with them go for it.

Your method of funding it though would be unlikely to be acceptable to a mainstream lender. The vast majority of personal unsecured loan providers do not allow an unsecured loan to be used for property purchase, similar to they way they don't allow them for business use or gambling. If you give false information, I.e. tell them it's for a car, you could be committing fraud. You're also unlikely to be accepted for a mortgage if you tell them you'll only need it for less than 5 years, plus most BTL mortgages have high set up fees.

If you'll have the funds to complete the purchase in around a year, it's probably cheaper and easier to wait.

TheSimDude

sparky130a

bob_bank_spanker wrote: »

Sparky now purports to know the ins and outs of commercial financiers. As well as knowing more about tax than tax accountants (another thread)

troll sad

Spank my arris bob...

getmore4less

What rate is the loan?

If you have the cashflow to repay within the year there may be cheaper options to providing the cash like using 0%CC(fee) and or 0% purchase CC(no fee).

if the plan is to grow the portfolio then longer term cashflow could be eased with longer term borrowing.

tacpot12

I borrowed £24K from Smile to buy and renovate a flat to let (I had £32K already saved). I needed about £20K for the purchase and £4K for the renovation, I declared this on the application form and was slightly surprised but pleased when this was accepted.

I took the loan out over seven years, but used the income from the flat, plus other income, to clear it in three years to save about £3000 of interest.

WabbitWabbit

I applied online with my bank (First Direct) for a £15K personal loan towards buying a new home, I already had £210K from house sale and savings. The loan was to be paid back over three years, I can't remember if they asked what the loan was for but it was approved in minutes and have paid it all back.