Lendable loan

gadget88

My brother took a loan for a montage as new never knew you couldn’t use loan funds. They have taken the 1st payment would they cancel the loan if he has to pull out of the mortgage? He has been given the other cash as a gift for the mortgage but waiting to see if it’s accepted if not he wants to pay back?

[Deleted User]

gadget88 said:

My brother took a loan for a montage as new never knew you couldn’t use loan funds. They have taken the 1st payment would they cancel the loan if he has to pull out of the mortgage? He has been given the other cash as a gift for the mortgage but waiting to see if it’s accepted if not he wants to pay back?

I think what you are trying to say is they took a loan out to help pay for a deposit on a mortgage and you want to know if the lender will call in the loan if the mortgage doesn't go through?
First, I don't think a lender will lend money if declared for a deposit, so I hope your brother didn't lie on the application, as that is fraud. Second, mortgage lenders won't accept a deposit if funded by a loan, so they won't get a mortgage. 
He can just pay off the loan early and might have to pay 56 days interest, depending on the lender. 

gadget88

Thanks so he can maybe pay it off early and yes he did declare it was for a property.