taking out loan as deposit for house

csgohan4

Penelopa.Pitstop wrote: »

It worked for my friends. Took loan 3-4 months before mortgage. Then declared the amount as savings, no one questioned it.

How long ago was this?

gonsdad

Ashamed_of_Bristol wrote: »

Hi

Could I please ask advice on how best to go about taking out an unsecured loan as the deposit for a house please?


Also could I politely ask people don't jump on me as I know this approach is not the established wisdom but it has got my friend on the property ladder and I am getting older and running out of time.

Whilst this might not be the cheapest way of doing this it might be my only way.

I am aware that people will be able to read my previous posts so there's no need to try and "catch me out". I realise my finances are in bad shape. I don't need it pointing out. I remember when MSE was a non-judgemental site.

Happy to answer questions that will help people to give me the right advice.

Thanks in advance

AoB

Good luck getting that kind of advice here. I got given pelters for daring to consider a mortgage when I still have money to pay on a credit card...

csgohan4

gonsdad wrote: »

Good luck getting that kind of advice here. I got given pelters for daring to consider a mortgage when I still have money to pay on a credit card...

if you want a rose tinted version of things there's your mate down the pub, realistic answers are given here, especially from those who are also mortgage brokers on here and give their time up for free


For example having a loan/debt/credit balance will always impact on your mortgage affordability, but some people don't like to hear that and be patted on the back and say you will be fine

kingstreet

There are are a small number of lenders which accept a loan for a deposit. However, the best-known of them will not provide the loan if it is providing the mortgage.

Seeking independent broker advice might be a helpful way to avoid making a silly mistake which ends up closing more doors than it opens.

gonsdad

csgohan4 wrote: »

if you want a rose tinted version of things there's your mate down the pub, realistic answers are given here, especially from those who are also mortgage brokers on here and give their time up for free


For example having a loan/debt/credit balance will always impact on your mortgage affordability, but some people don't like to hear that and be patted on the back and say you will be fine

Some realistic answers are given here, others go way overboard with the aim of shaming the less financially-savvy.


The 10k loan suggested here is a huge eyebrow-raiser but people with credit cards or car finance get approved for mortgages every day. Admit to having either of those on this forum and you may as well get burned at the stake.

AdrianC

There is a difference between having cards (by which I assume you mean no backlog of debt) and car finance, and having nearly £5k of back debt and a DMP completed within six years. On top of that, the OP is looking for 100% financing of the property.

Candyapple

Did you ever get to the bottom as to why your broker told you that your max lending capacity for a mortgage was £50k?

https://forums.moneysavingexpert.com/discussion/comment/73790437#Comment_73790437

How much is the house that you will be looking to buy?

franklee

gonsdad wrote: »

The 10k loan suggested here is a huge eyebrow-raiser but people with credit cards or car finance get approved for mortgages every day. Admit to having either of those on this forum and you may as well get burned at the stake.

Surely the issue is the mortgage lender's requirements. If they treat an unsecured loan for the deposit differently to an unsecured loan for a car then that is their choice based on the risk they want to take when stumping up the mortgage money.

I would ask why the mortgage lender treats them differently? I guess they want the homeowner to have some "skin in the game" so they treat the property responsibly?