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

[Stressmode]

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!

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

Where?

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

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.

This made me chuckle

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/

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

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.

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 :(”

Who says that?

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

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?

Your repayments would factor in your affordability check

😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭😭

Affordability check for what?

Going back to the OP, I have taken personal loans out over the years, for a conservatory, double glazing, kitchen etc etc

All housey things.

If you get a loan, they won't give you 200k in a mortgage, probably 160k or less.

We had a 4k loan when remortgaging last time and it dropped our offer by 20k. Had to ask my dad to temporarily pay it off for us and take a new loan once sale had gone through.

I understand your frustration, and I’d like to let you know that there are specialized loans for situations like yours, such as renovation loans or secured loans that can help cover the remaining amount for the property. These types of loans can be used for home improvement, even when buying a property that needs restoration.

If you’re interested, feel free to reach out — I can help you explore financing options to make your dream home a reality.

I understand the challenge, and it’s true that small loans or outstanding debts can impact mortgage offers. However, there are options like secured loans or personal loans that can be used to bridge the gap in situations like this. If you’d like more information or assistance in finding the right solution, feel free to reach out — I’d be happy to help you explore your financing options.

While the idea of borrowing money from a trusted relative and then having them provide you with a personal loan may seem like a quick solution, it’s important to be cautious with this approach. Lenders typically require full transparency about the source of funds, and structuring loans in a way that could be seen as misleading might raise red flags with financial institutions.

It’s best to explore options such as secured loans or renovation loans for your home purchase, which can provide the additional funds needed while staying compliant with financial regulations. If you’re interested, feel free to reach out — I can help you navigate through these options.

This thread is really making me giggle. The poor reading and comprehension skills of so many mumsnetters is quite something.

Plus the financial advisor joining at the end trying to flog everyone loans 🤣🤣

Its great isnt it!

Theres another thread doing the same thing, about a MIL mithering someone to go to church, no one has bothered to read the OP properly

Wow this is turning into a cancel the cheque thread. The loan won’t reduce a non existent mortgage.

OP get a loan for house renovations, that is what you are doing, renovating a house, there is no limit on how fast the money has to be spent on the renovations and over the term of the loan you will more than likely spend that amount.

For the mortgage
when you apply for a mortgage they want to know your outgoings to check you can afford repayments

🤣🤣🤣🤣

For the love of cheese.

I really don’t understand the OP
so OP wants to buy a house but can’t get a mortgage because it needs renovations

so she want to borrow 25k to do work on a house that she obviously won’t own as she can’t get a mortgage

then once renovation done she will then be able to get a mortgage on it ( which she would need affordability check do the 25k loan would factor in on this )

disclaimer
I’ve always struggled with grammar and comprehension but back in the day you were put on the slow table and that was it
did consider going back to college but no need as there always some self righteous superior arsehole happy to correct you