Using a secured loan as a deposit?

Jenmould86

Me & my partner are looking for some advice on getting a mortgage.
Our circumstances are that my partner is a first time buyer but i am not. When my Father passed away his money was left in a trust for me and when i was a teenager my Mother used some of that money to buy a house outright that was then held in a trust by my Mother & solicitor until i turned 25, at that point the house was put in my name.
I have since moved into renting with my partner in Manchester and my mother still resides in the house in Liverpool. I can not sell the house as my Mother is in her 60's and can not afford to move.
We took some advice from a personal friend who is a mortgage adviser who said we could take out a secured loan against the house i own, enough for a £10,000 deposit and for any other fees on top associated with buying a house, so a secured loan of between £15,000 & £20,000. With the hope that if this is possible that both my partner and I would pay back the loan as well as the mortgage.
We also got advice from a close friend that has also took a loan from a bank as the deposit and her and her partner pay back the loan and the mortgage, so i know it is possible. Although they are first time buyers.
We are looking for some advice on if this is a possibility and if banks do a secured loan and would let us use it as a deposit or if we got a secured loan from elsewhere could we use it with a bank as our deposit?
As there is no point in us going forward in getting a secured loan against the house if we will end up being turned down as using it as a deposit for a house.
We have done the online mortgage calculator and between us come out as being able to get a mortgage of around £160,000. We currently pay £715 a month in rent so could easily afford to pay the mortgage repayments & a loan back.
After a brief conversation with Halifax on the phone, as we are both with them we thought we would try them first, we were told we couldn't even speak to a mortgage advisor until we had already sorted our deposit and that we couldn't use a loan as one.
Does anyone have any experience of this? We are needing to move as soon as possible as we have a problem neighbour who is really disrupting our life and i begrudge paying out £2000 just to have to rent again i would rather just sort the mortgage out.
Thanks

MovingForwards

How much is your house worth what your mum is in?

Mortgage companies do not like loans taken out to pay for deposits.

somethingcorporate

MovingForwards wrote: »

How much is your house worth what your mum is in?

Mortgage companies do not like loans taken out to pay for deposits.

Banks will also not like loans to be taken out for this purpose too....

ACG

There are only 1 or 2 lenders I know of who will allow a loan to be the deposit.
The loan will be an expense that may reduce the mortgage amount available.

If your friend is a mortgage advisor who has recommended this route, why are you not speaking to them to help you?

Jenmould86

The house at its lowest value is worth around £80,000.
And they were a mortgage advisor for 20 years but now work in a different area not with a bank and our other friend still works for a bank but is no longer in the mortgage department so there is limited help they can give us. Both said they don't see it being a problem but when we spoke to the bank they said they don't do it.
Was just hoping it could be an option.

E30M3

Can you take out a Mortgage on the property you own outright? won't you get a better rate?
Doing a very quick check a £20k mortgage for your £80k house over 30 years would be about £70 PCM (the period is irrelevant as you can pay it off quicker)
You could take this proposal to an independent mortgage advisor regarding running two concurrent mortgages and your affordability eligibility.