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Can you use a secured loan to buy a house.

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Mummy007
Mummy007 Posts: 37 Forumite
Fourth Anniversary 10 Posts Name Dropper
in Loans
Can you use a secured loan cash  to buy a house, example need £25,000 to buy our  council home.
Could I get a secured loan instead of a mortgage, secured on the house.

Comments

  • Vinknut
    Vinknut Posts: 94 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    You can't get a secured loan on a property you neither own, nor have a mortgage on, nor have any equity in.
  • BrassicWoman
    BrassicWoman Posts: 3,218 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Mortgage-free Glee!
    edited 13 March 2021 at 7:34PM
    The only reason I can think for asking this is that the main earner and therefore loan-taker is not entitled to the discount - would that be correct?
    There are processes in place to prevent this, as it's often seen as an abuse of the discount scheme.
    Otherwise, if the loan and property are in the same name, the cheapest kind of secured loan IS a mortgage. The exception will be where the loan is so small it's below the lender's mortgage floor.
    2021 GC £1365.71/ £2400
  • Mummy007
    Mummy007 Posts: 37 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    The amount is so low many mortgage companies dont lend the low amount required.  The discount is in the joint tenants names a loan is would be more simple and a lot quicker over 5 years - I shall look into a personal loan.
  • zzyzx1221
    zzyzx1221 Posts: 188 Forumite
    100 Posts Name Dropper
    Mummy007 said:
    The amount is so low many mortgage companies dont lend the low amount required.  The discount is in the joint tenants names a loan is would be more simple and a lot quicker over 5 years - I shall look into a personal loan.
    It's very unlikely you'll find a personal loan that allows you to use it for property purchases.
  • DCFC79
    DCFC79 Posts: 40,641 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Mummy007 said:
    The amount is so low many mortgage companies dont lend the low amount required.  The discount is in the joint tenants names a loan is would be more simple and a lot quicker over 5 years - I shall look into a personal loan.

    I would hope you would  some research into "can I use a personal loan to buy a house".
  • BrassicWoman
    BrassicWoman Posts: 3,218 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Mortgage-free Glee!
    First one I looked at, Nationwide, has a 25k minimum so seems a suitable mortgage for you. There will be others!
    To get the much better rate a mortgage typically offers, I'd borrow more, and then pay some off early.
    2021 GC £1365.71/ £2400
  • Vinknut
    Vinknut Posts: 94 Forumite
    Fourth Anniversary 10 Posts Name Dropper
    What's the value of the property?
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