Strange advice from broker

John-K_3

Dmnd wrote: »

Hmm mortgage fraud implies that i have illicit intencions.
Right? The money isn!!!8217;t being laundered or obtained illegally. I!!!8217;m simply borrowing money to pay something off. Perhaps it!!!8217;s not ethical, which I get. But how would the lender find out, if the money has been in there for X amount of months. What would prompt them to ask for more thn 6-12months bank statements..

For the previous comment, if i need a lower deposit i!!!8217;ll just pay off the loan early..

You will be asked about debts which you have. If you do not mention this loan then yes, it is fraud.

May I ask, why do you ask for advice and then argue against it? We!!!8217;re you just looking for people to agree with you?

csgohan4

if you can't afford a house with your own savings and have to take a loan, you can't afford a house.

daveyjp

csgohan4 wrote: »

if you can't afford a house with your own savings and have to take a loan, you can't afford a house.

I disagree.

We took a loan out for our deposit, paid it off over three years and also paid the mortage. Payments for both were less than the rent we had been paying.

Richard_Pia

I'm with Davey on this one. At one time lenders actively encouraged borrowers to take unsecured loans alongside their mortgage, albeit some of this lending could be deemed irresponsible. Nowadays affordability requirements are much stricter so a lender would would only lend if they were comfortable that affordability was sustainable. If a mortgage lender thinks you can afford a house - with a loan for the deposit - then you can certainly afford a house.

csgohan4

unfortunately with the people on here taking out the loans, they are often pushing their affordability, like the people who take out loans for a brand new car before applying for a car.

While I accept some people can get a mortgage with a loan, there will be some that commit mortgage fraud or put them selves in trouble Via a loan to make up for a deposit when they have not been able to save one.

Interest rates are low, but for how long

getmore4less

It is really easy to convert a loan(or a gift) in to legitimate savings people do it all the time.

sociable7

Any update as too whether everything went through?

If you think about it lenders don't care
They just follow regulation.
So good on you not being a scary cat.

Dmnd

I will update you guys on the progress, I want to wait 6 months just incase the lender wants more thn 3 months bank statements, but highly ublikely they will ask for 12.
Likee what get4moreless mentioned, there are people who have done it in the past just in different ways.

Was hoping to see if anyone on the forum has done it previously.

getmore4less

You want your outgoings to look relatively normal and save the surplus from income.

pre borrowing to cover spends to allow savings is no different to borrowing as you go.

You end up with savings and debt.

For gifts it converts to savings.