Page 3 | To wonder why it is so difficult to borrow money to buy a house

Stressmode · 2025-04-10T16:53:31+00:00

So I want to buy a house for 225k. I am 25k short. I can’t get a mortgage on the house because it needs restoration. I am capable of doing the restoration. How can I borrow 25k? I can easily make the repayments from my income. I could get a personal loan… but they all specify that they are not to be spent on property. it seems batshit crazy that I could take out the personal loan and spend it on holidays!

AquaPeer · 11/04/2025 20:56

rwalker · 11/04/2025 20:55

Your repayments would factor in your affordability check

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rwalker · 11/04/2025 20:55

heldinadream · 10/04/2025 17:56

Left field thought. Borrow the 25 grand. Give it to a trusted relative. Relative then gives you a personal loan of 25 grand.
That's where your extra money came from, a relative.
Would this work?

Your repayments would factor in your affordability check

AquaPeer · 11/04/2025 20:53

Sofiewoo · 11/04/2025 20:41

Why would the lender of the loan do checks on the source of the money which would alert the lender of said money then? That makes no sense.

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I don’t know what you’re finding so hard to follow.

the OP has been very clear this is a cash purchase. There is no mortgage

do you really think she’s made a mistake and actually has a mortgage?

the post you keep quoting is saying she is worried the solicitor who does the anti fraud checks might contact the PERSONAL LOAN LENDER and tell them that she’s used the personal loan to buy a house.

this will not happen, because it would be illegal for the solicitor to do this. Neither would the solicitor be concerned with a personal loan as a source of funds. However OP doesn’t not know this, and has therefore asked.

are you getting it now?

soupyspoon · 11/04/2025 20:48

Stressmode · 10/04/2025 20:20

Yup, just super frustrating that I can borrow 25k in literally 3 clicks and no questions asked. I could spend that on cocaine and gin and no one would care. Just they won’t let me put it towards a house! The world is insane.

Who says that?

Borrow the money in a couple clicks like you say and be done

Sofiewoo · 11/04/2025 20:42

AquaPeer · 11/04/2025 17:56

Where?

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Literally the last comment that people are replying to.

“I have no idea how deep they will dig down when they do the checks on the source of the money… and if that will alert the lender :(”

Sofiewoo · 11/04/2025 20:41

AquaPeer · 11/04/2025 17:57

Do you mean this? She’s talking about the personal loan lender

Why would the lender of the loan do checks on the source of the money which would alert the lender of said money then? That makes no sense.

AquaPeer · 11/04/2025 20:34

What’s the advantage of a bridging loan? It’s likely to be far more expensive than a personal loan?

maddening · 11/04/2025 20:28

Sorry why not a bridging loan?

Once the property is in a mortgagable state you can mortgage to pay off the bridge

https://www.moneysavingexpert.com/loans/bridge-loans/

crazeekat · 11/04/2025 18:00

GoatCatTaco · 10/04/2025 18:50

You fancy a new car, don't you?

This made me chuckle

Quiceinalifetime · 11/04/2025 17:58

heldinadream · 10/04/2025 17:56

Left field thought. Borrow the 25 grand. Give it to a trusted relative. Relative then gives you a personal loan of 25 grand.
That's where your extra money came from, a relative.
Would this work?

Thank you to the person shouting THERE'S NO MORTGAGE.
You'd have to lie when applying for the loan because the lender would ask what it's for.
You'd have to explain before the purchase could go through where you got the money from.
I wouldn't.

AquaPeer · 11/04/2025 17:57

Do you mean this? She’s talking about the personal loan lender

To wonder why it is so difficult to borrow money to buy a house

AquaPeer · 11/04/2025 17:56

Sofiewoo · 11/04/2025 17:06

The OP said lender though.

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Where?

Sofiewoo · 11/04/2025 17:26

jimmyhill · 11/04/2025 17:14

This is an amazing thread!

The OP doesn't need a mortgage! SHE DOESN'T NEED A MORTGAGE.

SHE. DOESN'T. NEED. A. MORTGAGE.

She just needs a special kind of loan that can be used to purchase a property she can't quite afford, as personal loans don't allow this.

Therefore, it is agreed that her best solution is fraud.

Why would her lender be doing checks on the source of her money then 😂

jimmyhill · 11/04/2025 17:14

This is an amazing thread!

The OP doesn't need a mortgage! SHE DOESN'T NEED A MORTGAGE.

SHE. DOESN'T. NEED. A. MORTGAGE.

She just needs a special kind of loan that can be used to purchase a property she can't quite afford, as personal loans don't allow this.

Therefore, it is agreed that her best solution is fraud.

Sofiewoo · 11/04/2025 17:06

AquaPeer · 11/04/2025 16:56

Not the lender, the solicitor (or estate agent) doing anti fraud checks. But it’ll be fine, this isn’t what they’re looking for. They’re looking for money laundering 😂

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The OP said lender though.

yugflalska · 11/04/2025 17:00

AquaPeer · 11/04/2025 16:55

The loan isn’t for home improvements, it’s to purchase the house.

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Oooh sorry, I thought it the renovations she mentioned. I understand the frustration now!

AquaPeer · 11/04/2025 16:56

Sofiewoo · 11/04/2025 16:49

OP is the one who said they were worried the “source of the money” coming from a loan would alert the lender though.

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Not the lender, the solicitor (or estate agent) doing anti fraud checks. But it’ll be fine, this isn’t what they’re looking for. They’re looking for money laundering 😂

AquaPeer · 11/04/2025 16:55

yugflalska · 11/04/2025 16:52

So why isn’t she just getting a personal loan? Tesco do home improvements as a reason? I don’t understand this thread!

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The loan isn’t for home improvements, it’s to purchase the house.

yugflalska · 11/04/2025 16:52

whoopdeedoo · 11/04/2025 16:43

Omg how many times does it need to be said-no mortgage to be taken out, renovations to be done by OP. Only debt involved is the £25k personal loan needed to top up the OP’s cash for her to pay for the property purchase.

So why isn’t she just getting a personal loan? Tesco do home improvements as a reason? I don’t understand this thread!

Sofiewoo · 11/04/2025 16:49

whoopdeedoo · 11/04/2025 16:43

Omg how many times does it need to be said-no mortgage to be taken out, renovations to be done by OP. Only debt involved is the £25k personal loan needed to top up the OP’s cash for her to pay for the property purchase.

OP is the one who said they were worried the “source of the money” coming from a loan would alert the lender though.

whoopdeedoo · 11/04/2025 16:43

Omg how many times does it need to be said-no mortgage to be taken out, renovations to be done by OP. Only debt involved is the £25k personal loan needed to top up the OP’s cash for her to pay for the property purchase.

Sofiewoo · 11/04/2025 15:41

Stressmode · 10/04/2025 23:34

I have no idea how deep they will dig down when they do the checks on the source of the money… and if that will alert the lender :(

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The lender doing checks on the source of the money?
I thought the house was not able to have a mortgage taken on it?
Yes if you’re taking a mortgage and still 25k short the lender will absolutely be able to see that a substantial chunk of your deposit comes from a loan and you won’t be able to borrow the same amount.
They don’t need to dig that deep.

titchy · 11/04/2025 15:31

Im confused then. I thought you were buying the house with existing cash. Do you not in fact have enough cash to buy it, hence the loan? I was under the impression you only needed the loan for the restoration? So you do need a mortgage?

In which case you need to go to a specialist mortgage provider - they do exist. Self builders use them.

yugflalska · 11/04/2025 15:20

Sorry I haven’t read the replies but I don’t understand, I was looking at Tesco loans the other day (that go up to £25,000) and home improvements is one of the options?

whoopdeedoo · 11/04/2025 15:16

It’s not fraud..it would be a breach of the terms of the loan (presumably the remedy for which would be immediate recall but that’s unlikely if repayments are being made on time) but no one is being defrauded!

OP I would say it is to repay credit card debt and purchase of furniture. The effect is the same. Create debt on a 0% card if necessary, with all your day to day expenses, putting the equivalent into a savings account.