What mortgage lenders allow you to use an unsecured loan for a deposit?

Oonagh26 · 19 September 2017 at 3:46PM

Hello,
Does anyone know if there's an easy way to find out what mortgage lenders allow a deposit from an unsecured loan? I know that some do, I just don't know which ones, and it doesn't seem to be a filter option on comparison websites.
Thanks

kingstreet · 19 September 2017 at 3:57PM

There isn't one.

It's a broker job. You'll then get the best product for you as well.

mummytofour · 24 September 2017 at 8:50PM

I'm sure that is not even legal now!

Fiesto88 · 24 September 2017 at 9:11PM

I work for a high street lender (one of the more picky ones at that) as an underwriter and we do accept personal loans as a deposit source as long as we haven’t provided the loan and affordability criteria is met with the loan included.

amnblog · 24 September 2017 at 9:17PM

Yes, strangely this is possible, although rarely done as affordability mostly won't work.

WillyWonga · 24 September 2017 at 9:43PM

When I worked for a well known bank in the unsecured loans dept when applications came in stating reason for loan was house deposit it was rejected by underwriters. Yet if the same person said car or home improvements it would have been accepted. Truth is the bank's won't delve deeper into what you want money for but will take you on your first answer....

bubblerawk · 25 September 2017 at 7:54AM

I know this is possible as I’m going through this right now. We are taking a small loan out to bridge the gap for our deposit and our mortgage has been approved. I have been told only two high street banks do this and one doesn’t allow help to buy so you are very limited.

glosoli · 25 September 2017 at 8:23AM

Just out of curiously when you are applying for the loan, is house purchase a valid reason for the application? I had thought borrowing for the purposes of purchasing a residential home had to be a regulated agreement.