6K loan towards flat purchase

PeacefulWaters

Herzlos wrote: »

You should be able to get a mortgage offer (usually good for ~3 months) before you put an offer in on the house you're looking to buy. Just go to the bank with the listing and all the details, they'll give you an offer, you then buy the house and have the mortgage paid out on completion (via your solicitor).

Agreement in principle rather than a mortgage offer.

nic_c

You can get houses for £50K, in Nov 2017
House in Leeds LS3 sold for 50K
House in Bradford BD7 sold for £41K
House in Sunderland SR4 sold for £42K
could carry on.
Mostly terrace houses but still houses.

fiisch

Impossible to say without knowing your credit worthiness, but a £6k loan is a relatively modest amount. I imagine for most people it is very possible, but there is a question as to what interest you'll pay (Zopa, for example, are one of the best loan providers out there right now with a rate of 3.0%, but there are providers who'll charge 20-odd % for the privilege of lending to customers with a lower credit score).

If you have a poor credit score, you may be looking at significantly higher rates of interest, at which point you'll have to weigh up whether the extra interest is worth it to move early/to a better area.

Alternatively, for £6k, might be worth looking at a 0% credit card? If you time it well, you get 3 months 0% spending which could be used to pay some of your moving costs... Again though, will be credit score permitting.

In my opinion, if a "cheap" loan is not available, I'd be tempted to wait until you have saved the money, but there are plenty of providers to try....