Loan for Property Purchase (not a mortgage)

Jimmy_Boy

Hi,

There is quite a long back story to my question, but I'll keep it brief.

I am in a position where I only need £8,000 to purchase my property and would like to get a loan for this amount, and pay it off over 30 months.

1. Can you legally get a loan for this, or does it have to be a mortgage?

2. The idea of a loan is more appealing to me due to being able to get it on a shorter term (mortgage is minimum of 5 years I believe), and the loan not being secured against my property. Am I right in thinking that this is a better option for me (if I can get a loan, not a mortgage)

Thanks in advance.

[Deleted User]

Many lenders will not lend for property purchases. You'll need to dig into their criteria.

System

As above. Nothing to say you don't want an unsecured loan for a <cough> house shaped new car though....

Jimmy_Boy

Thanks.

If you were in my position, what would you be tempted to do? I've thought about the 'house shaped car', but not proceeded.

I have already made an application with my bank (Barclays) for a 'Home Improvements' loan as advised by my banks personal advisor (on 09/10/2017). This was not automatically approved and had to be sent off for approval. The loan was declined as Barclays can see I am making rent payments, and would not approve a loan for £9,000 for home improvements on a rented property.

Based on this, it was suggested to apply for a short term mortgage and have been given the details of the person to speak to at Barclays.

I have though about applying with another bank for the loan, but this time stating it is for a car - do the banks share loan request information etc... i.e. If I now applied for a car loan with Lloyds, would they potentially say no, as my request with Barclays was a) for home improvements, b) declined.

Thinking further ahead, this is my first property purchase and I am hoping to use it as a stepping stone to something better in the near future, for which I probably would need a mortgage. If I was to take a mortgage now, then in the future this would look better and I would have a better chance of getting a mortgage in 5-10 years time.

The main disadvantage I see to a mortgage is that it is secured against the property, whereas a loan is not.

Any advice welcomed.

Candyapple

Jimmy_Boy wrote: »

Thanks.

If you were in my position, what would you be tempted to do? I've thought about the 'house shaped car', but not proceeded.

I have already made an application with my bank (Barclays) for a 'Home Improvements' loan as advised by my banks personal advisor (on 09/10/2017). This was not automatically approved and had to be sent off for approval. The loan was declined as Barclays can see I am making rent payments, and would not approve a loan for £9,000 for home improvements on a rented property.

Based on this, it was suggested to apply for a short term mortgage and have been given the details of the person to speak to at Barclays.

I have though about applying with another bank for the loan, but this time stating it is for a car - do the banks share loan request information etc... i.e. If I now applied for a car loan with Lloyds, would they potentially say no, as my request with Barclays was a) for home improvements, b) declined.

Thinking further ahead, this is my first property purchase and I am hoping to use it as a stepping stone to something better in the near future, for which I probably would need a mortgage. If I was to take a mortgage now, then in the future this would look better and I would have a better chance of getting a mortgage in 5-10 years time.

The main disadvantage I see to a mortgage is that it is secured against the property, whereas a loan is not.

Any advice welcomed.

First thing's first, you need to make a complaint about this 'advisor' because their advice could very well have led to you getting a CIFAS marker for application fraud.

As a matter of fact, they've probably screwed you over now because if you apply elsewhere for a loan, your application details are recorded by National Hunter and Synetics Solutions and any discrepancies will likely be flagged.

CIFAS Categories Explained

0 - Protective Registration - Recorded at the request of the person named.
1 - False Identity Fraud - Use of a false name with an address.
2 - Victim of Impersonation - Use, by another person, of this name and/or address.
3 - Application Fraud (Facility Granted) - Use of name reasonably believed to be genuine, but with one or more material falsehoods in personal details or other relevant information -; the facility was granted.
4 - Application Fraud (Facility Refused) - Use of a name reasonably believed to be genuine, but with one or more material falsehoods in personal details or other relevant information -; the facility was refused.
5 - Conversion - Conversion (disposal or sale) of goods (to which the hirer/buyer does not have title) under a hire purchase, conditional sale, contract hire, leasing or rental agreement.
6 - First Party Fraud - Opening an account or other facility for a fraudulent purpose, or the fraudulent misuse of an account or facility.
7 - Aiding & Abetting - Aiding, abetting or assisting, or conspiring with, another or others to fraudulently procure credit, or other facilities, or hire products or services.
8 - Insurance Claims Fraud - The making of a claim(s) under one or more insurance policy (ies) with one or more material falsehoods or by presenting a false or forged document.

Rather than lie, if you need a loan for a house purchase then you need to apply for a mortgage.

Jimmy_Boy

Yeah, see a couple of my previous posts and this is just the latest in a string of bad advice from him.

Initially I went to the bank, asked to speak to someone about buying a property, got my personal advisor, and I asked him 'I only need £X to purchase my property, is a loan or a mortgage best?, to which I got a reply of 'A loan'. And here we are...

Jimmy_Boy

Re: CIFAS marker, how do I know if I have one, and if I do get one, how is it removed. Do they automatically get removed after x years / x months?

Candyapple

Oh yes, now I remember:
http://forums.moneysavingexpert.com/showthread.php?t=5662288

Is this the same person? Did you bother making a complaint about him?

Candyapple

Jimmy_Boy wrote: »

Re: CIFAS marker, how do I know if I have one, and if I do get one, how is it removed. Do they automatically get removed after x years / x months?

If you have one, you will know because you won't be able to get credit anywhere.

It's only removed when the bank/company who placed it with CIFAS in the first place, agree to remove it.

Read this:
https://debtcamel.co.uk/name-fraud-database/

CIFAS marker lasts for 6 years and is very serious. Even any existing bank accounts/credit cards you hold will likely be closed once they get wind you've got a fraud marker against you. No car insurance either, only 2 companies who would insure you at sky high prices.

Jimmy_Boy

Jeees, this just gets worse and worse. I'm looking to get a car after I done this, so will obviously need insurance. Ever since taking 'advice', things have gone to !!!!! !!!!!

Jimmy_Boy

Candyapple wrote: »

As a matter of fact, they've probably screwed you over now because if you apply elsewhere for a loan, your application details are recorded by National Hunter and Synetics Solutions and any discrepancies will likely be flagged.

I'm trying to fully understand the potential consequences... are you saying

A) I may already have a CIFAS marker due to this
Applying for another loan elsewhere will give me a CIFAS marker, but currently I should be ok
C) I should currently be ok, and applying for a mortgage should not trigger a CIFAS marker, as this is the correct type of borrowing for the purpose.

I'm hoping it's C. Pretty peed off to be honest now.