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Personal Loan / House Deposit
ed603em
Posts: 19 Forumite
Hi all,
My wife and I are first time buyers and have been saving for a deposit to buy a house which we have found.
In August, we were planning on purchasing a car and took out a personal loan for this. The car that we had been planning on buying fell through and we ended up buying a car that was much less expensive, meaning we had money left over from the loan.
We decided to pool this money with the other savings we had for the house deposit.
We are in the process of using an independent broker to get us a mortgage for the property we want to buy. The lender have asked for details of our savings and I have informed the broker of all the details.
I have been looking through older posts and have seen that lenders will automatically decline an application if even part of the deposit was funded through a loan and am slightly worried. We had looked at it in terms of affordability only and can very comfortably afford the monthly repayments plus mortgage repayments.
I have not yet heard back from the broker but, based on reading previous posts, I am worried that the sale for the house will fall through because of this. We could repay the loan and save the difference but that would mean approx 6 months saving and the sale would fall through. Are there any other options that we could explore?
My wife and I are first time buyers and have been saving for a deposit to buy a house which we have found.
In August, we were planning on purchasing a car and took out a personal loan for this. The car that we had been planning on buying fell through and we ended up buying a car that was much less expensive, meaning we had money left over from the loan.
We decided to pool this money with the other savings we had for the house deposit.
We are in the process of using an independent broker to get us a mortgage for the property we want to buy. The lender have asked for details of our savings and I have informed the broker of all the details.
I have been looking through older posts and have seen that lenders will automatically decline an application if even part of the deposit was funded through a loan and am slightly worried. We had looked at it in terms of affordability only and can very comfortably afford the monthly repayments plus mortgage repayments.
I have not yet heard back from the broker but, based on reading previous posts, I am worried that the sale for the house will fall through because of this. We could repay the loan and save the difference but that would mean approx 6 months saving and the sale would fall through. Are there any other options that we could explore?
0
Comments
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What lender are you with?0
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We’re not with any lender yet. Our broker is independent so can presumably access mortgages with all lenders. The lender that the broker is currently looking at is the post office0
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Post office will decline once they find out rhe deposit is partially from a loan. Not sure how back they go before they count it as savings.
Broker should be able to tell you which lender takes loan as deposit. There is only 1 I am aware of ( santander)
If you qualify for post office there is a good chance you will qualify for santander (unless the loan is with them)0 -
How much excess was it?
On paper it is easy to convert excess loan money into "real" savings by adjusting the spending for a while, use the loan money to pay for other things and save a bit more from income.
You will have all the costs for buying and moving that will use up a bit as well.0
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