Loan for a deposit

Penguin666

Hi all

I'll try and make this as easy as possible. I only work part- time and wife full-time. We have no deposit for a house (well 3k), and was wondering if I took out a loan for 10k and used that for a deposit for her to get a mortgage by herself?

I know loans are not a good idea but rather than throw £600 a month away in rent, this actually seemed a good idea?? I also know it may lower the loan amount because of the loan, or maybe not if it's in my name??

The way I see it is she needs 25% to obtain a mortgage with her credit so this seems like the only way to do this right now? Please correct me if I'm wrong?? Many thanks

cjmillsnun

No, not under any circumstances. You have to pay for the loan and the mortgage between you.

ACG

There are a lot of issues with your idea...

There are lenders who will accept loans as a form of deposit - but a handful at most.
There are lenders who will accept a gift from a partner if the partner is living in the property - but again, not many.
There are lenders who will accept single applications for couples who have saved some/all of the deposit together - but not many.

There are one or 2 lenders I think you could get lucky with and it could potentially slip through. But im not sure I would feel doing it as a broker.