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  • Mortgages & Finance

    Personal loans as deposits on BTL

    And then why are you saying an unsecured loan is criminal offence while a secured loan is not? It seems all a bit odd.
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    Your missing the point ?? telling fibbs to a lender is wrong and if they find out it could be classed as a fraud

    Dont lie on applications be honest and you have nothing to worry about

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    by the  sounds of it you must know what your doing so best of luck to you

    DL


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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    With respect, I didn't say an unsecured loan was a criminal offence.  I said non-disclosure of using a loan for a deposit was mortgage fraud, which it is.  If you disclose that it is a loan, and the lender accepts that, then its not fraud.  It's the non-disclosure which is fraud as it is obtaining money by deception.

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    Completely agree with you. From the posts above, the barrier is a policy decision made by the lenders that one type of loan is preferred over other types of loan as a deposit. 

    Odd world we live in where they will easily lend £50k for a depreciating asset like a car and have you pay interest on it but will not allow someone else to pay a loan off for you on a more stable asset.
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    I agree . These pay day loans also are madness

    Extortionate interest rates to the most vulnerable but they still lend it out against nothing

    Whereas  I am super solvent and got turned down for a mobile phone contract a few years back

    Too many mortgages they said

    I would feel very comfortable with 100% mortgage if only they would let me borrow

    I have excellent equity, cash flow ,savings and a demonstrable track record but they are blind to that these days

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    Jonathan Clarke. http://www.buytoletmk.com


    Thank you for your insights Jonathan, strange world we live in, but rules are rules as you say. Have a good evening
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    The lender will ask to see proof of funds If you say at that point you have borrowed it

    you will have not have broken the law because you were honest

    If you have said you have saved the funds and told the lender its from saved income and its not its Fraud

    Its just like saying to a lender my income is 25k when in fact its 12k

    a lie is a lie and thats when it becomes a problem

    your fibbing to get a mortgage

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    Lenders are not usually happy to accept a loan as a method of deposit although I accept the point that raising funds on a remortgage is also 100% finance.  

    There may be a lender who could take a view on an unsecured loan being used, as long as the rest of the application was strong (ie net position and income vs expenditure). It’s worth speaking to a broker to see if they can get a lender onboard based on your overall profile.


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    Mortgages For Business is a commercial partner of Property Tribes.

    Email: propertytribes@mortgagesforbusiness.co.uk

    Telephone number: 0345 415 3501

    When you take out a mortgage the lender wants to know about all your other debts. They want to be certain that if you default they can auction off the property and get the whole loan back. They don't want a legal battle with other creditors who crawl out of the woodwork or are quicker off the mark getting their claim in.
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