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

It is fraud - you are not using for the loan for the purpose disclosed and for property which you say is an excluded use.

However, when Solicitors check where the money is coming from, from my experience you disclose it's from a personal loan, you show them the loan letter and the movement of money into your account. I've never been asked for the loan's terms & conditions or to sign any declaration that I have met the loans terms & conditions.

There is no mortgage needed - so no implications on reducing lending for a mortgage.

Ah I see. Maybe post on the legal or money sections here. Ask if mortgage lenders are alerted of any other loans you try to take out when you're applying.

That said, I know my buyer had to have some of his checks redone because he took so effing long to buy my flat!

I think a pp’s suggestion of a trusted friend or relative really could work. If they took out the loan, then gifted you the money, I don’t think there would be a problem putting towards the house. There would be tax on it, though, I think.

Bridging loan?

When we bought our house, the only check into the source of our deposit was literally being asked where the money was coming from. 'Savings' was accepted as an answer. OP, I would just take a loan out for another reason and distribute it amongst savings accounts prior to the purchase.

if there's no questions asked then why do you worry about it? Just get the loan.

Nah this is rubbish. It could simply be unmortgageable because it doesn't have what is deemed as a functioning kitchen - certainly doesn't have to be 'condemned!!'.

Honestly, how are they going to know what you spend it on? They also won’t care as long as you are meeting repayments.

Huh? Surely that means no people who take out a mortgage can afford to buy a house that needs renovating?

No she’s posted very clearly to say she has the income and qualifications to do restoration herself. She HAS said this.

she is simply £25k short of cash for the purchase. This is easy for her to borrow and easy for her to repay. But strictly speaking, no personal loan provider will lend her the cash for this purpose. Which is what she’s expressing annoyance about.

thats what she’s posting about.

if she did just get a £25k mortgage you wouldn’t be saying she couldn’t afford it. What’s the difference?

How do I know? Because she’s literally posting about being £25k short. Have you read the thread? It’s the whole point!

How on earth do you know? Why wouldn’t OP be capable of making that decision herself?

you know nothing about her, maybe OP is a builder. You have no idea how much needs doing, how much materials are needed or if OP needs to live in the house whilst she does it up. Bloody hell 😭

@AquaPeer Her finances have told her she can’t have the house, not me.
If a property isn’t eligible for a mortgage from basically all lenders then it’s pretty much condemned and the amount of work needed to make it habitable will be huge and extremely costly wherever you are in the country. It’s simply not the sort of renovation you can find from month to month with no large cash injection.

"Unmortgageable" e.g. no kitchen is a cascading thing. Lenders won't take it as security because if they repo and need to sell then many a buyer can't get a mortgage on it and they're limited to recouping money from cash buyers.

Why are you saying this? OP hasn’t asked whether she should buy the house. You don’t know anything about it. Utterly bizarre to blast in and tell her she can’t have the house 🤯

The poster means the lender for the personal loan won’t check what it’s spent on

If its not mortgageable then its not livable and its not a small amount of work. If you cant afford the extra £25k on the purchase price you cant afford the renovation either.

The solicitors WILL check the source of funds as part of the money laundering laws. They need to record evidence of where the funds have come from to ensure that they're legal otherwise they risk prosecution.

I didn't want to assume.

There's plenty of posts on here from people who have only tried High Street lenders and haven't even considered going trying mortgage brokers, etc etc

So it seemed worth mentioning

last move, I got in a bizarre conversation with a High Street lender who wasn't even familiar with let to buy mortgages. Tried to tell me they didn't exist. I just thought I'd try them first because that's where my initial mortgage was. This was a call with a mortgage advisor!!

Anyway, if OP has tried everything then I guess personal loan is the answer.

Ecological building society used to lend on a pile of bricks!

If it’s not mortgageable its not mortgageable. I assume OP has had a quick google and tried the few lenders who specialise in this. Besides why even do that when you can get a personal loan?

OP, you’re going on a once in a lifetime cruise.

Can’t you just say it’s for an extension? Conservatory? New kitchen?