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Original poster

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

138 replies

Stressmode · 10/04/2025 17:53

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!

OP posts:
EmeraldRoulette · 10/04/2025 19:32

AquaPeer · 10/04/2025 19:28

OP said it’s not mortgageable. Quite common if the house needs extension renovation

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But there's specialist mortgage companies for this. I thought that was their reason for existing.

BirthdeighParteigh · 10/04/2025 19:32

Get a self build mortgage. Loads of people borrow money to build or renovate houses - you just can’t borrow from a high street lender, that’s all.

AquaPeer · 10/04/2025 19:30

Jabberwok · 10/04/2025 19:29

Ahhh sorry miss read....what a prat!

Personal loan then is the only way forward. Sadly op may have to be "economic" with the trurth...but it's £25k so I'd personally take the risk

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Me too. Personally when I rang to take out a personal loan they said “you know we only do personal loans for cars or house renovations don’t you? So which one are you doing?” 😂 they don’t care

Jabberwok · 10/04/2025 19:29

AquaPeer · 10/04/2025 19:24

STILL NO MORTGAGE 😂😂

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Ahhh sorry miss read....what a prat!

Personal loan then is the only way forward. Sadly op may have to be "economic" with the trurth...but it's £25k so I'd personally take the risk

AquaPeer · 10/04/2025 19:28

EmeraldRoulette · 10/04/2025 19:28

Wait, you can't get a £25k mortgage on a £225000 house because it needs restoration?

that doesn't add up. Unless mortgage rules have gone madder in the last two years - I appreciate they might have. How many mortgage brokers have you asked?

OP said it’s not mortgageable. Quite common if the house needs extension renovation

EmeraldRoulette · 10/04/2025 19:28

Wait, you can't get a £25k mortgage on a £225000 house because it needs restoration?

that doesn't add up. Unless mortgage rules have gone madder in the last two years - I appreciate they might have. How many mortgage brokers have you asked?

AquaPeer · 10/04/2025 19:27

Lovegame · 10/04/2025 19:26

But she will still have to for materials

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She is paying for materials out of her monthly income

wherearemypastnames · 10/04/2025 19:26

would you be able to get the 25k loan for a holiday after you had took on the mortgage though? Isn’t it a case you can have one because you don’t have the other ?

Lovegame · 10/04/2025 19:26

AquaPeer · 10/04/2025 18:24

Isnt OP saying she’ll do the restoration herself?

she doesn’t need a mortgage, the house isn’t mortgageable. She just wants to borrow £25k to complete the purachse of £225k. Presumably £200k is cash

But she will still have to for materials

AquaPeer · 10/04/2025 19:24

Jabberwok · 10/04/2025 19:23

There's a reason why they don't want to provide the extra money in your circumstances...it's your circumstances. Remember the credit crunch 2008? I was working for an insurance company who's house insurance was sold by mortgage lenders to their customers...Lehman brothers' company in the UK was one of mine...as were a few other sub prime lenders...pumping money to people at 10 or 15 times their income.

yes you can do the renovation now, yes you're earning...but have you seen the news? Trump, tariffs, stock market, trade war....what would you do if you lose your job? Break a leg? And the housing market slides. How do you pay off a £200k mortgage when the house is worth £175?

STILL NO MORTGAGE 😂😂

AquaPeer · 10/04/2025 19:23

titchy · 10/04/2025 19:11

But she’s not using the loan for the purchase. She’s buying cash and will be subject to the source of the cash being checked anyway. She completes, having had all the checks ok’d then realises she needs a new car and a new kitchen. Job done.

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She is using the loan for the purachse tbf. She’s £25k short of the purchase price.

it won’t impact the anti fraud checks though

edwinbear · 10/04/2025 19:23

I’d say it’s for a new kitchen personally. Presumably you will need a new kitchen at some point, given it sounds like a bit of a project. So it’s not really untrue.

Jabberwok · 10/04/2025 19:23

There's a reason why they don't want to provide the extra money in your circumstances...it's your circumstances. Remember the credit crunch 2008? I was working for an insurance company who's house insurance was sold by mortgage lenders to their customers...Lehman brothers' company in the UK was one of mine...as were a few other sub prime lenders...pumping money to people at 10 or 15 times their income.

yes you can do the renovation now, yes you're earning...but have you seen the news? Trump, tariffs, stock market, trade war....what would you do if you lose your job? Break a leg? And the housing market slides. How do you pay off a £200k mortgage when the house is worth £175?

AquaPeer · 10/04/2025 19:19

ResultsMayVary · 10/04/2025 19:17

Can you tell the seller you can buy if fur $25k less?

Surely if you are struggling to finance it so would others?

well others would just have the extra £25k cash surely? Why would they not have that because OP doesn’t?

Mrsgreen100 · 10/04/2025 19:18

Car or wedding!!!

ResultsMayVary · 10/04/2025 19:17

Can you tell the seller you can buy if fur $25k less?

Surely if you are struggling to finance it so would others?

CozyCoupe · 10/04/2025 19:14

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?

I'd do this!

titchy · 10/04/2025 19:11

Olive567 · 10/04/2025 19:05

Well yes, the source of your money will be checked when you buy a property and it may cause problems if you are not telling truth about what the loan is for. I'm in the process of buying a house right now and am having to go through numerous checks of my bank accounts, sources of funding (loans, gifts etc) - presumably for money laundering purposes.

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But she’s not using the loan for the purchase. She’s buying cash and will be subject to the source of the cash being checked anyway. She completes, having had all the checks ok’d then realises she needs a new car and a new kitchen. Job done.

AprilBunny · 10/04/2025 19:09

Lucelady · 10/04/2025 19:00

Definitely a 'car' purchase.

It’s so a wedding.

AquaPeer · 10/04/2025 19:07

Olive567 · 10/04/2025 19:05

Well yes, the source of your money will be checked when you buy a property and it may cause problems if you are not telling truth about what the loan is for. I'm in the process of buying a house right now and am having to go through numerous checks of my bank accounts, sources of funding (loans, gifts etc) - presumably for money laundering purposes.

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This is really stretching. The check will be with solicitors, an anti fraud check. OP simply supplies proof of funds.

its none of the solicitors concern that OP had cash for a house then took out a car loan. Many people have personal loans.

Olive567 · 10/04/2025 19:05

titchy · 10/04/2025 18:58

She’s buying cash….

Just say it’s for a car, or a new kitchen, or school fees. No-one will check.

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Well yes, the source of your money will be checked when you buy a property and it may cause problems if you are not telling truth about what the loan is for. I'm in the process of buying a house right now and am having to go through numerous checks of my bank accounts, sources of funding (loans, gifts etc) - presumably for money laundering purposes.

Barney16 · 10/04/2025 19:03

New car, debt consolidation, new kitchen, buying a boat. I don't think a lender would check. They just want your business.

Lucelady · 10/04/2025 19:00

Definitely a 'car' purchase.

titchy · 10/04/2025 18:58

PaintDecisions · 10/04/2025 18:55

Yes, and materials still cost a fortune...

But if OP borrows now, their mortgage offer will be affected, so they'll still be short.

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She’s buying cash….

Just say it’s for a car, or a new kitchen, or school fees. No-one will check.

AquaPeer · 10/04/2025 18:56

PaintDecisions · 10/04/2025 18:55

Yes, and materials still cost a fortune...

But if OP borrows now, their mortgage offer will be affected, so they'll still be short.

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There is no mortgage 😭 third times a charm

im sure OP is capable of costing up how she’ll pay for materials, not sure why you’d assume she can’t.