Borrowing money for a mortgage

DaffyDuck316

Hi again, 

I often hear that it is frowned upon to use an overdraft/credit card for a mortgage and many lenders will subsequently reject an application for people that would try to do this. 

So hypothetically, what if I were to borrow some money (say like £5000) from my boss and use that. Then when my mortgage is approved, I pay my boss back with my overdraft a couple of months later.

Is that something that could work? 

Phoenix72

You do realise that the bank and solicitor need proof of funds and an audit trail. A loan is a loan and your idea won't work.

MattMattMattUK

DaffyDuck316 said:

Hi again, 

I often hear that it is frowned upon to use an overdraft/credit card for a mortgage and many lenders will subsequently reject an application for people that would try to do this. 

So hypothetically, what if I were to borrow some money (say like £5000) from my boss and use that. Then when my mortgage is approved, I pay my boss back with my overdraft a couple of months later.

Is that something that could work? 

You might find it if you try to side things it gets deemed mortgage application fraud, you get a CIFAS marker and are unable to access and financial products for six years.

Why do you need to "borrow money for a mortgage"?

Sncjw

If you haven't got a deposit saved then no chance. Also have you got the money for legal fees. I had to pay some money at the time of searches and land registry applications and then the remaining fees at the completion stage. 

DaffyDuck316

I'm a tenant and have put in a 90% offer for the house I am living in (for a concessionary mortgage).

The reason I asked was in case the landlord came up with a counter offer which would put me over what I could afford and I would end up losing the house I am in.

Probably not the most sensible question to ask. I was thinking I could say if questioned that the money was gifted but obviously I don't want to risk being done for fraud, but like I know I could pay back a small amount of debt and I'm aware of other fees I need to cover too, 

Sncjw

What do you mean 90 percent offer? 

DaffyDuck316

90% of the asking price with the remaining 10% to be used as a deposit 

BarelySentientAI

Still no idea what you mean by a 90% offer.

Do you mean that you have asked for a mortgage of 90% of the price you will be paying for the house?

DaffyDuck316

The house is for sale for £250000

I made an offer for the house for £225000.

This would open the door for me to get a concessionary mortgage. If accepted I would not need to have money for a deposit.

Someone please tell me if that makes sense, my understanding of mortgages is quite limited, which is probably why my posts are confusing.

Thanks.

Flugelhorn

DaffyDuck316 said:

The house is for sale for £250000

I made an offer for the house for £225000.

This would open the door for me to get a concessionary mortgage. If accepted I would not need to have money for a deposit.

Someone please tell me if that makes sense, my understanding of mortgages is quite limited, which is probably why my posts are confusing.

Thanks.

OK the price for sale is 250, you have offered 90% - the owner may or may not accept this 

for a concessionary mortgage it would need the landlord to say that the 25K was a gift - are they are a relative? are they likely to give you 25K? 

If not then it is fraud

If the offer for 225K is accept then you probably still need a deposit - have you got some savings?

silvercar

DaffyDuck316 said:

The house is for sale for £250000

I made an offer for the house for £225000.

This would open the door for me to get a concessionary mortgage. If accepted I would not need to have money for a deposit.

Someone please tell me if that makes sense, my understanding of mortgages is quite limited, which is probably why my posts are confusing.

Thanks.

All hinges on the value of the property. Just because the landlord is asking £250k doesn’t mean that is the market value. A property is worth what someone is prepared to pay. It may be worth £250k, but the landlord is giving it to you cheaper because it means he doesn’t need to pay estate agent fees, doesn’t have any time when the property is empty while he waits for a sale, doesn’t have any costs in evicting you etc That all helps if the valuer accepts that the true value of the property is £250k. However if the valuer only thinks it’s worth £230k you haven’t got sufficient deposit.