Can I use a personal loan and cash to buy a house outright

TripleH

Will you be able to borrow 15,000 and what would the interest rate you have to pay on that be?

Ignore in principle loans, it's what you are actually offered.

A mortgage is far cheaper than a personal loan as it is secured.

Why not get the smallest mortgage you can and pay that. In a separate account put the difference between the mortgage and personal loan each month. Overpay the maximum year you can and then at the end of the fixed term pay down another lump sum.

Whilst you may struggle to get a mortgage for 15,000, I suspect a re-mortgage is somewhat easier otherwise there would be a lot of people stuck when coming toward the end of their mortgages.

Kudos for thinking about this and coming here for suggestions. Maybe the mortgage free wannabe is a better area for suggestions on providers?

Ryan_Holden

pushpull said:

MorningcoffeeIV said:

It's outside of the risk appetite of most lenders. Usual exclusions are property, gambling, investment etc 

For property, they want some security.

I'm not convinced it's outside their risk appetite as they'll happily lend via a mortgage.

Ultimately they can get the security via a mortgage, so why not do that? I don't think a 10k loan for property is inherently riskier than
a 10k loan for home improvements.

But if they lend via a mortgage they have security on the asset.