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edited 29 January 2020 at 2:34PM in Loans
9 replies 559 views
Legacy_userLegacy_user Forumite
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MoneySaving Newbie
edited 29 January 2020 at 2:34PM in Loans

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  • Gaz83Gaz83 Forumite
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    nwh wrote: »
    I am purchasing a new build house which is due to be completed in March 2020. I have been approved for a mortgage with no issues. To purchase the house, I borrowed my deposit from a family member. I am looking to apply for a loan in order to pay back this money but I would also like to pay off my overdraft and credit card in order to consolidate my debts and just have one monthly payment being made.

    Can I apply for a loan before my mortgage starts or is there a chance that this could jeopardise my mortgage?

    Through the loan eligibility calculator, I only have a 30% chance with Tesco Bank and have 0% chance with everywhere else. Should I still apply?
    The mortgage company will do a final check before the funds are released. Any loan will impact on potential affordability.

    Did you tell the mortgage company that your deposit was coming from a loan? They don't usually like that.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • DrEskimoDrEskimo Forumite
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    Wait until completion.

    Consolidation is rarely a good way to clear debts, as it can end up doubling your borrowing and paying more in interest if you extend the repayment period.

    Your far better off doing a detailed budget, where you cut spending as much as possible, and then overpay the debts one by one till they are cleared.

    It doesn't look like you have good chances of getting a loan anyway, and if you did, they are likely to be very high interest.
  • DrEskimoDrEskimo Forumite
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    nwh wrote: »
    Thank you for the advice, I will definitely wait until completion. I would just prefer to pay off the money I have borrowed for my deposit as a lump sum as this would be better for my relative.

    It's very noble of you, but it was given as a gift, so I highly doubt they would want you to get into debt in order to pay it back?

    Work on paying back your other debts, and then you will have a good amount of surplus income to start saving to pay back your relative.
  • Gaz83Gaz83 Forumite
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    nwh wrote: »
    Thank you, I wasn't sure whether they would do any further checks or not before releasing the funds.

    No I told them that the deposit was gifted to me which they were fine with.
    Committing fraud with your mortgage company isn't usually the best start to your relationship with them, to be honest.
    "Facism arrives as your friend. It will restore your honour, make you feel proud, protect your house, give you a job, clean up the neighbourhood, remind you of how great you once were, clear out the venal and the corrupt, remove anything you feel is unlike you... [it] doesn't walk in saying, "our programme means militias, mass imprisonments, transportations, war and persecution."
  • foxy-stoatfoxy-stoat Forumite
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    nwh wrote: »
    Thank you for the advice, I will definitely wait until completion. I would just prefer to pay off the money I have borrowed for my deposit as a lump sum as this would be better for my relative.

    You may as well do it now, seeing as you have already lied to the lender that the "gift" wasn't a gift it was a loan and you probably havent told them about the new loan you had planned on taking out so it will all end in tears at some point, may as well be before you exchange.
  • EssexHebrideanEssexHebridean Forumite
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    nwh wrote: »
    Thank you, I wasn't sure whether they would do any further checks or not before releasing the funds.

    No I told them that the deposit was gifted to me which they were fine with.

    OK - as a general rule the rules around gifted deposits are pretty clear - and your relative would have been expected to sign a document confirming that the deposit was a gift. Has this not happened? Has something happened in the interim that now means that you are choosing to make alternative arrangements for the deposit? if the latter then I'm going to strongly suggest that you notify your solicitor so that they can let your mortgage company know and see how they want to proceed.
    MORTGAGE FREE 30/09/2016 :D
    SOA CALCULATOR (for DFW newbies): SOA Calculator
  • Lover_of_LycraLover_of_Lycra Forumite
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    nwh wrote: »


    :rotfl::rotfl::rotfl:

    Pointless, your OP has already been quoted in full.
  • Sea_ShellSea_Shell Forumite
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    Is it just me, or does a blanked out OP make you want to look MORE, to see what's occurred??

    I'd have probably just scrolled past otherwise...
    "It's time to start digging up those Squirrelled Nuts"!!!

    * I shall only get involved in new threads, once a dialogue has been established with the OP *
  • DCFC79DCFC79 Forumite
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    Sea_Shell wrote: »
    Is it just me, or does a blanked out OP make you want to look MORE, to see what's occurred??

    I'd have probably just scrolled past otherwise...


    I agree.


    ...
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