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AIBU?

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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:
PaintDecisions · 10/04/2025 18:55

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

Yes, and materials still cost a fortune...

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

AquaPeer · 10/04/2025 18:55

there is no mortgage it says in the OP 😭

AquaPeer · 10/04/2025 18:55

Vedette89 · 10/04/2025 18:51

Bridging loan. Do the renovations. Remortgage once renovated and pay off the bridge.

There is no bridging loan it’s a cash purchase 😂

Vedette89 · 10/04/2025 18:51

Bridging loan. Do the renovations. Remortgage once renovated and pay off the bridge.

whoopdeedoo · 10/04/2025 18:51

Have you actually spoken to potential lenders about this? I suspect the condition of not being used to buy property is in the context of adding it on to mortgage borrowings, taking you beyond the lending limits of loan to value and/or ability to repay. Your situation that is different - it would not over expose you to any more debt than if you used the cash to buy a car or go on a holiday. So maybe try a discussion?

AquaPeer · 10/04/2025 18:50

Oh yeah OP. A new car would be nice wouldn’t it

GoatCatTaco · 10/04/2025 18:50

You fancy a new car, don't you?

Original poster
Stressmode · 10/04/2025 18:38

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

Exactly! It is an old house and I have the skills and qualifications to do the work myself. I will also have an income from my actual job that will pay the loan off and pay for materials and the restoration.

OP posts:
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

PaintDecisions · 10/04/2025 18:20

A £25K loan will affect your ability to borrow for the mortgage, so your offer there would be reduced as well.

How will you fund a renovation if you're already £25k short?

AquaPeer · 10/04/2025 18:03

They don’t actually check or care what you spend it on, although I recently hit a personal loan and was told by multiple companies they only loan for a car or house improvements, particularly as £25k is very much at the upper end of the value of a person loan

TheNightingalesStarling · 10/04/2025 18:01

If you are 25k short how are you going to fund the restoration?

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?