Page 5 | 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!

tinymoon · 11/04/2025 22:31

This is amazing. I thought I found mortgages and things like that confusing. I feel like a genius after reading some of these responses 🤣

rwalker · 11/04/2025 22:46

Think I’ve got it
OP has 200k to put down the house must be deemed un mortgageable this normally happens when it’s seen as uninhabitable as in no kitchen or bathroom

got totally sent down a rabbit home with OP when I bought a house they put a retention on the mortgage and wouldn’t realise the full amount till the repairs had been carried out

why exactly is it deemed un mortgageable ?

StillCreatingAName · 11/04/2025 22:50

Unless I’ve missed it somewhere in this chat- why doesn’t the OP just offer 200k as a cash buyer (presumably in a position to exchange straightaway) on the property. It would probably only be another developer who could reach 225k in cash, so why not just present a case why they (whoever is selling) should sell to OP for 200K or 205/10. For a property to be un-mortgageable it has to be in a pretty bad state, so presumably OP already has budget to kick start the project- could borrow from that for any small amount over the 200k?

AquaPeer · 11/04/2025 22:53

StillCreatingAName · 11/04/2025 22:50

Unless I’ve missed it somewhere in this chat- why doesn’t the OP just offer 200k as a cash buyer (presumably in a position to exchange straightaway) on the property. It would probably only be another developer who could reach 225k in cash, so why not just present a case why they (whoever is selling) should sell to OP for 200K or 205/10. For a property to be un-mortgageable it has to be in a pretty bad state, so presumably OP already has budget to kick start the project- could borrow from that for any small amount over the 200k?

I would imagine she’s already tried that or else she wouldn’t be in this situation 😂

PricklyLikeCactus · 12/04/2025 07:49

Last year my partner thought he wanted to buy another van so he took out a loan for 10k so he had the money when the right one came up.

He did look for a while, but some land that we wanted to buy needed paying for and so that savings pot got completely emptied.

The van loan is nearly paid off now, and he still doesn’t have a second van.

😜

Pinkywoo · 12/04/2025 09:21

OP why exactly is it not mortgageable? If it's a lack of kitchen/bathroom then I'd get one from Facebook marketplace (they're sometimes even free if you dismantle and collect). It doesn't need to be pretty or properly installed, just enough to tick the box. We recently bought a wreck, and the mortgage company's valuation consisted of a bloke having a quick look in each room to check the listing pictures were still current, he was there less than ten minutes!

soupyspoon · 12/04/2025 09:23

Pinkywoo · 12/04/2025 09:21

OP why exactly is it not mortgageable? If it's a lack of kitchen/bathroom then I'd get one from Facebook marketplace (they're sometimes even free if you dismantle and collect). It doesn't need to be pretty or properly installed, just enough to tick the box. We recently bought a wreck, and the mortgage company's valuation consisted of a bloke having a quick look in each room to check the listing pictures were still current, he was there less than ten minutes!

Shes trying to buy the house, she cant just rock up to someones house and plonk a kitchen in

Anyway many properties are not mortgagable for other reasons, non standard construction, flying freeholds, subsidences, considered 'uninhabitable'. Any number of reasons

whoopdeedoo · 12/04/2025 12:00

Suspect OP is now unconscious from repeatedly banging her head on her keyboard so may not be back..

Vedette89 · 17/04/2025 19:24

AquaPeer · 10/04/2025 18:55

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

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Reading comprehension clearly not a strong point? She can't afford the purchase. 😂 A bridging loan is how she affords it! It's different to a mortgage.

maddening · 18/04/2025 21:39

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?

You would get it and get the house to a mortgagable position and then mortgage to pay off the bridging loan - it is a vehicle to enable you to do that.

Abitofalark · 18/04/2025 22:11

I don't know whether I should be laughing at this thread or not but I can't help it. The thread is deep into mortgages, remortgages, affordability checks, bridging loans and money laundering checks for what is apparently a no-mortgage house purchase.

Did we not all learn to read from simple books like Janet and John at the age of five or six? Some people appear not to have got that far yet.

Suzuki76 · 19/04/2025 11:07

Abitofalark · 18/04/2025 22:11

I don't know whether I should be laughing at this thread or not but I can't help it. The thread is deep into mortgages, remortgages, affordability checks, bridging loans and money laundering checks for what is apparently a no-mortgage house purchase.

Did we not all learn to read from simple books like Janet and John at the age of five or six? Some people appear not to have got that far yet.

Ok but the bridging loan comment is fair because the OP wanted to get a small mortgage of £25k to buy the property but couldn't due to the condition of it, and bridging is how you get round it. It is literally for unmortgageable properties. I don't know why there were then a load of laughing smileys and THERE IS NO MORTGAGE comments in reply. And yes, it is expensive.

FedupofArsenalgame · 19/04/2025 11:10

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?

There's no bloody mortgage to pay off. Doesn't anyone read? It's a cash sale

Radionowhere · 19/04/2025 11:12

They won't check what you spend it on, and provided you make the repayments they won't care. I would take the loan and crack on.

Radionowhere · 19/04/2025 11:13

FedupofArsenalgame · 19/04/2025 11:10

There's no bloody mortgage to pay off. Doesn't anyone read? It's a cash sale

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It's grating isn't it! 😂

FedupofArsenalgame · 19/04/2025 11:13

Waymarked7 · 11/04/2025 21:01

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.

She doesn't want a mortgage

TimeForABreak4 · 19/04/2025 11:26

Radionowhere · 19/04/2025 11:12

They won't check what you spend it on, and provided you make the repayments they won't care. I would take the loan and crack on.

The loan lender won't check, but the solicitor will need to check the source of her funds to purchase the house and she's concerned they will contact the lender what she is using it for. Therefore committing fraud as the loan can't be used to buy a property so she'd need to have lied what it was for to get it.

This threads bonkers.

Jabberwok · 19/04/2025 20:15

FedupofArsenalgame · 19/04/2025 11:10

There's no bloody mortgage to pay off. Doesn't anyone read? It's a cash sale

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Yes someone already pointed that out to me and I apologised then...doesn't everyone read the full thread before posting? Said firmly tongue in cheek because it really annoys me too when people don't read the op!

Justgivemesomepeace · 19/04/2025 21:10

Have you looked into house renovation mortgages? Or a bridging loan. They would be the most obvious ways to do it.

AquaPeer · 19/04/2025 21:49

TimeForABreak4 · 19/04/2025 11:26

The loan lender won't check, but the solicitor will need to check the source of her funds to purchase the house and she's concerned they will contact the lender what she is using it for. Therefore committing fraud as the loan can't be used to buy a property so she'd need to have lied what it was for to get it.

This threads bonkers.

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They absolutely will not. That would be illegal as well as well, well beyond their scope of business

Abitofalark · 19/04/2025 22:36

Suzuki76 · 19/04/2025 11:07

Ok but the bridging loan comment is fair because the OP wanted to get a small mortgage of £25k to buy the property but couldn't due to the condition of it, and bridging is how you get round it. It is literally for unmortgageable properties. I don't know why there were then a load of laughing smileys and THERE IS NO MORTGAGE comments in reply. And yes, it is expensive.

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What? OP is short of £25k and wanted to get a personal loan or other means. The house is not suitable for a mortgage.

blubberyboo · 19/04/2025 22:56

AquaPeer · 19/04/2025 21:49

They absolutely will not. That would be illegal as well as well, well beyond their scope of business

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There are rules (brought in around 2016 with the European Mortgage Credit Directive) which make it much more difficult for PERSONAL LOAN lenders to advance PERSONAL LOANS for the purpose to buy land.

This is why personal loan lenders will not advance funds for that purpose.

So yes if you lie on an application it is a form of borrower fraud

AquaPeer · 19/04/2025 23:11

blubberyboo · 19/04/2025 22:56

There are rules (brought in around 2016 with the European Mortgage Credit Directive) which make it much more difficult for PERSONAL LOAN lenders to advance PERSONAL LOANS for the purpose to buy land.

This is why personal loan lenders will not advance funds for that purpose.

So yes if you lie on an application it is a form of borrower fraud

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Your post doesn’t seem related to my post or the post I responded to. The solicitors dealing with the house sale will not phone the lender to determine the reason the loan was given for, neither will they be told if they do.

blubberyboo · 19/04/2025 23:21

AquaPeer · 19/04/2025 23:11

Your post doesn’t seem related to my post or the post I responded to. The solicitors dealing with the house sale will not phone the lender to determine the reason the loan was given for, neither will they be told if they do.

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It relates to your post and all the others that went before encouraging the OP to lie on a personal loan application.
There seems to be this misconception that personal loan lenders aren't lending money to buy property just because they don't want to or something.

It's actually due to the regulations which they are bound by in order to retain their permissions to act as lenders.

The solicitor would have to check the source of funds and would be very aware ( from their knowledge of mortgage regulations) that a lender would not have advanced a personal loan for this purpose and to continue with the transaction they would become a party to the lie.

So whatever you think!

AquaPeer · 19/04/2025 23:27

blubberyboo · 19/04/2025 23:21

It relates to your post and all the others that went before encouraging the OP to lie on a personal loan application.
There seems to be this misconception that personal loan lenders aren't lending money to buy property just because they don't want to or something.

It's actually due to the regulations which they are bound by in order to retain their permissions to act as lenders.

The solicitor would have to check the source of funds and would be very aware ( from their knowledge of mortgage regulations) that a lender would not have advanced a personal loan for this purpose and to continue with the transaction they would become a party to the lie.

So whatever you think!

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There is no misconception and you are still wrong about the solicitor phoning the lender