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tcrabb

Cash House Purchase - Top Up Loan?

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Had offer accepted on a house at £86.5k. Was OK'd for mortgage while back but as I my savings is only £13k short of agreed price it would be better if I could just bump up my savings with a small personal loan. This would avoid having to pay for product/application fee (usually about £1000) plus the banks valuation survey which would be superfluous as I am getting a structural survey done inpedendently. Another advantage as that cash purchase would probably be much quicker. Also no early redemption charges and other such nonsense.

Having said that I did some enquiries wiht my bank and they have given provisional go ahead for up to £25k personal loan but I have discovered that they won't allow you to use loan to fund house purchase. I understand that rule for using loan money to find a deposit but I am not trying to do that, I just need small top-up to buy outright . I could just fib and say it is for "home renovations" which they are OK to lend for. But I would rather keep things honest if possible.

Anyone have experience of this kind of thing?

Any ideas?

Thanks.

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Had offer accepted on a house at £86.5k. Was OK'd for mortgage while back but as I my savings is only £13k short of agreed price it would be better if I could just bump up my savings with a small personal loan. This would avoid having to pay for product/application fee (usually about £1000) plus the banks valuation survey which would be superfluous as I am getting a structural survey done inpedendently. Another advantage as that cash purchase would probably be much quicker. Also no early redemption charges and other such nonsense.

Having said that I did some enquiries wiht my bank and they have given provisional go ahead for up to £25k personal loan but I have discovered that they won't allow you to use loan to fund house purchase. I understand that rule for using loan money to find a deposit but I am not trying to do that, I just need small top-up to buy outright . I could just fib and say it is for "home renovations" which they are OK to lend for. But I would rather keep things honest if possible.

Anyone have experience of this kind of thing?

Any ideas?

Thanks.

Tell them its a loan for a car and then put towards the house no way they can tell

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Or get a mortgage? The amount you need is probably less than the minimum most lenders will lend, you can always borrow more with a smaller deposit. Just make sure you get an offset mortgage or another product that allows for unlimited over payments without penalties. There are products with very small (< £50) and no application fees out there and include the bank survey.

The mortgage rates you'll get on the 13K you need will be lower than pretty much any other form of loan you'll be able to get.

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