foxnet22 Posted March 19, 2016 Report Share Posted March 19, 2016 Having been offered our house with discount we have managed to save a substantial amount.we have been told that we can't go for a mortgage of 10000 and can't use a personal loan to put towards a house purchase I wonder if this is correct can anyone advise on this situation thanks Quote Link to comment Share on other sites More sharing options...
shaun4860 Posted March 19, 2016 Report Share Posted March 19, 2016 When I bought mine, I had a fixed rate for 3 years, when I came out of it I tried for another fixed rate deal, Apparently I didn't owe enough for a new fixed rate so had to go on a tracker, My mortgage was £26k they said they could remortgage up to £40k and then get a fixed rate, so I imagine there is a lower amount that you have to "owe" them before they will deal with you, Just to add, they had no qualms about lending me the £26k to buy the house. I can't see the problem in getting a loan for the £10k and then you would be a cash buyer, I'm sure a friend of mine has just paid cash for his ex council house? Quote Link to comment Share on other sites More sharing options...
foxnet22 Posted March 19, 2016 Author Report Share Posted March 19, 2016 When I bought mine, I had a fixed rate for 3 years, when I came out of it I tried for another fixed rate deal, Apparently I didn't owe enough for a new fixed rate so had to go on a tracker, My mortgage was £26k they said they could remortgage up to £40k and then get a fixed rate, so I imagine there is a lower amount that you have to "owe" them before they will deal with you, Just to add, they had no qualms about lending me the £26k to buy the house. I can't see the problem in getting a loan for the £10k and then you would be a cash buyer, I'm sure a friend of mine has just paid cash for his ex council house? thanks for reply mate I contacted my bank and ased on a personal loan they asked what it was for when I explained to put towards my savings to purchase my property as a cash buyer I was puzzled when they replied they could not grant the loan for this purpose.maybe I will try another bank . Quote Link to comment Share on other sites More sharing options...
Lloyd90 Posted March 19, 2016 Report Share Posted March 19, 2016 Ain't it none of their business what you do with a personal loan ? More importantly how the hell have you managed to get a house for £10k ? Jammy *** , best of luck mate Quote Link to comment Share on other sites More sharing options...
harrycatcat1 Posted March 19, 2016 Report Share Posted March 19, 2016 thanks for reply mate I contacted my bank and ased on a personal loan they asked what it was for when I explained to put towards my savings to purchase my property as a cash buyer I was puzzled when they replied they could not grant the loan for this purpose.maybe I will try another bank . You could change your mind and ask for £10,000 for a car. Regards H Quote Link to comment Share on other sites More sharing options...
foxnet22 Posted March 19, 2016 Author Report Share Posted March 19, 2016 Ain't it none of their business what you do with a personal loan ? More importantly how the hell have you managed to get a house for £10k ? Jammy *** , best of luck mate I must admit it did cross my mind on why they asked what the loan would be used for .wish i did get it for 10k mate lol however it's to add to the savings we have to purchase the property . Quote Link to comment Share on other sites More sharing options...
robbiep Posted March 19, 2016 Report Share Posted March 19, 2016 (edited) Most banks have a minimum sum for mortgages. These days it's usually £25k. The only thing I could possibly suggest is that you take out a mortgage for £25k (or whatever the minimum is). Ensure that there are no restrictions on repayment of capital. Then, as soon as you can, pay off £15k of it. Edited March 19, 2016 by robbiep Quote Link to comment Share on other sites More sharing options...
scotslad Posted March 19, 2016 Report Share Posted March 19, 2016 The above would be the way to do it. Just make sure no clauses for early payback. U could also invest the money for 2 years and pay back after that if early repayment clauses I recently bought some land/site and was told the same, the bank can't loan money to buy land. But when i quickly changed mind and told him i wanted a new kitchen/car bank manger said it was already too late as i'd told him want i really wanted it for Quote Link to comment Share on other sites More sharing options...
al4x Posted March 20, 2016 Report Share Posted March 20, 2016 Check out off set mortgages as well, then you only pay interest on the difference between your savings and the loan amount. Personally ours costs £20 a month as we have a reasonable amount of savings offset, if we want to move the mortgage is in place and we have the money there and accessible Quote Link to comment Share on other sites More sharing options...
James1983 Posted March 20, 2016 Report Share Posted March 20, 2016 Good shout on the offset. I work for a building society but not a mortgage advisor (thank god) if it was me I would consider looking at doing it via offset then the cash is still there in case you need it for any emergencies. Quote Link to comment Share on other sites More sharing options...
bruno22rf Posted March 20, 2016 Report Share Posted March 20, 2016 Am I missing something ?....are you saying that you want to borrow money to put towards your deposit? Why would you do that? Do you not have enough deposit? Quote Link to comment Share on other sites More sharing options...
robbiep Posted March 20, 2016 Report Share Posted March 20, 2016 Am I missing something ?....are you saying that you want to borrow money to put towards your deposit? Why would you do that? Do you not have enough deposit? No, he's saying that they have enough to buy the house outright, apart from £10k. The bank minimum for a mortgage is greater than £10k, however. Quote Link to comment Share on other sites More sharing options...
AVB Posted March 20, 2016 Report Share Posted March 20, 2016 No, he's saying that they have enough to buy the house outright, apart from £10k. The bank minimum for a mortgage is greater than £10k, however. Then get a bigger mortgage. With mortgage interest rates as low as the are it makes no sense to get a personal loan. Put the spare capital in a (relatively) high interest account and it will match the interest you are paying on the mortgage. The rules on mortgages have been tightened up by the government under the Mortgage Credit Directive (MCD) so the tightening of mortgage rules isn't of the banks/building society making. That is why you can't use a personal loan for the purpose of buying a house otherwise it would be classed as a mortgage for which different rules apply. Quote Link to comment Share on other sites More sharing options...
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