Personal loan for mortgage deposit

MABLE

AstroTurtle wrote: »

Dont tell them it's for a house deposit?


No lender with give you a loan to get another loan

Good idea but they do want a CIFAS warning in the process.

thriftylass

I guess you have considered moving somewhere cheaper even just for a year, 2k rent is an awful lot, although it depends where you live.

Brock_and_Roll

Rent is of course a pure expense, but it is not a like for like comparison to make with a mortgage.


Assuming a £450k mortgage over 30 years at 2%, then the monthly payments would be circa £1,650 per month.


So £350pm better off buying as well as paying off (a very small amount of) capital.


BUT if you factor in all the additional costs of ownership such as insurances and maintenance, the £350 figure will be considerably reduced.


Personally I would regard it as financial madness to "gear myself up" with an expensive personal loan just to bring forward a potential house process. Would be risky thing to do if one person lost jobs etc. Would be better to wait, moving into cheaper rented place if this helps.

John-K_3

You are stretching yourselves too far. I would suggest cutting back on the spending for six months and saving as hard as you can. Your savings are very low given your wage, suggesting huge outgoings, which should hopefully be possible to cut back.
Edited to add, 30 year mortgage? Is this just to give you flexibility or as you cannot afford to make it shorter?

Back when I was on a similar wage to you I was saving a fair amount more than you are; it sounds like tightening your belt could be a good idea for a while.

ciderboy2009

One other thing which nobody else seems to have picked up on - why on earth are you looking at a 30 year mortgage with those earnings?

You should be looking at 20 years - 25 max. You'll be paying a fortune in unneccessary interest otherwise.

System

The question is that why on those incomes you haven't already got a deposit saved. You must be living a very expensive lifestyle to burn through that kind of money. With a salary of £80,000 a year each you are spending the thick end of £2000 A WEEK. Might want to look at where that money is going. In everywhere in the UK with that level of earning you could live on one income very well and save up the entirety of the second income and have a deposit for a mortgage within 12 months.

enthusiasticsaver

Would you really borrow a deposit at 19% when you both have high incomes? Save for longer and cut back where you can.

nic_c

enthusiasticsaver wrote: »

Would you really borrow a deposit at 19% when you both have high incomes? Save for longer and cut back where you can.

Because presumably the loan repayments will be less than the rent they are paying whilst they save.

Do all loan providers ask what the loan is for. Also
as the OP got rejected for one loan, have they got to the bottom of that rejection?

poppy10_2

broisatse wrote: »

House is £500k, we have ~£30k saved up, paying rent of £2k per month and saving £1k-1.5k per month,

If you're both earning £80k a year, that's a joint take-home income of over £9k a month. Even if you are paying £2k a month on rent, where is the rest of your money going? You should be able to save at least double what you are currently saving each month

broisatse

So the biggest outcome is that we have full time nanny, which we are sort of forced to given our working hours (9 to 9 usually). The little one goes to school in September, so that will go away. Also it is for that reason we want to move rather sooner than later so she's not changing school so often.

The mortgage in principle was given with assumed 19% APR, actual APR we get, based on soft check, was actually 2.8%.

We tried to get to the bottom of the Zopa rejection, they are however very much open about them never giving the rejection reason (apparently for security reasons).

We are currently investigating 95% mortgage option, it seems that a number of providers are now giving those, including Halifax and number of local building societies.