Loan for bigger deposit

Will_of_the_forest

My wife and i are getting frustrated by the time its taking to save for a house deposit. Plus we're not getting any younger! We have enough for 5% on a reasonable property but obviously a 10% deposit would make things more affordable in the long term. As there are a lot of very low rates being offered on loans at the moment we were wondering if taking out say a 10k loan to add to our current savings to get to the 10% mark would be a good idea?

ViolaLass

You're not the first to think of it and the mortgage lender won't like it. The loan will affect your affordability.

YHM

As above, the MAJORITY of lenders won't like it. I can only think of a couple of lenders that will openly allow it

juniordoc

I know its hard, my partner and I have saved for 6.5 years to get out first deposit together.
Try and be patient, more debt is not going to help you. Focus on minimising your outgoings and making sure your savings are earning as much interest as possible. There are also a few cash incentives being offered for switching current accounts at the moment that might be worth a look.
Keep going, it will be worth it in the end!

Will_of_the_forest

Thanks for replys. We thought the mortgage lenders wouldnt like it but doing our own calculations it could actually work out cheaper per month with a loan to make up a bigger deposit then having a larger mortgage with a smaller deposit. I know it probably isnt as simple as that but we were hoping for a miracle answer i guess

YHM

As I say, there are some lenders open to it, but you need to speak to a mortgage broker about your options.