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!

I didn't say the solicitor would phone the lender did I?

I said the solicitor would know that they were taking part in a deception of the lender. A lender who rightfully asked purpose of loan in order to retain their lending permissions with the Financial Conduct Authority. They could just refuse to proceed with the transaction and the OP would be out of pocket in wasted legal fees.

Oh my good GOD. Is everybody on this thread completely thick or just unable to read?

No, it isn't suitable NOW. She can use a bridging loan to get the 25k at 12% interest or so, adding it to the £200k. Get the house mortgageable with her own skills. Then remortgage, as in take out £25k equity, at about 4% to pay off the bridging loan. Voila.

Surely it would just be provided as cash along with the rest of her cash? Why would her solicitor care about the source? The solicitor won't be dealing with a bank as they would in most purchases.

I had a similar problem buying a house a few years ago. It was cheap, I’d saved cash but was £15k short and couldn’t get a mortgage. I managed to fill the gap with £5k from a 0% money transfer credit card, a £5k informal loan from someone I knew when a loan I’d been soft approved for wasn’t agreed, working 3 jobs (one full time, one weekends, one evenings) while the sale went through, some last minute juggling of everyday expenses onto credit cards and a big flap when my help to buy ISA denied me a bonus as I wasn’t getting a mortgage which sent me back out to family with the begging bowl but it all just about added up in the end.

From memory I think conveyancers just need to see the money in one account having legally got there and have an explanation of where it came from, if your other bank accounts and credit cards happen to all be in the red I think that doesn’t matter if you’re not applying for a mortgage. You’re just a bit stuck if renovations get a lot more expensive than anticipated as I discovered. Quite fun though up to that point.

The solicitor is legally bound to check the sources due to money laundering laws. They can find themselves in prison if they don't!

Ooops I didn't realise. Thanks for pulling me up on it

Leave out the insults. Losing the plot, shouting, invoking God, misrepresenting, making up what the OP wants and calling everybody but pointedly me, completely thick says more about you.

It is definitely mad. Have you consulted a mortgage advisor that might know of specialist lenders? Or do you have any assets at all that you could borrow against? How about local investors? Or a family member that could invest in it for a better return?

Another option I have heard about (not in the UK) is signing a sale agreement to buy after renovations, with the seller, use your cash to do the renovations then once is mortgageable you can buy it with a mortgage.

There is literally no point, people just don't read 😂😂

So you get a bridging loan, make the repairs required to make it nortgagable and then mortgage to clear the bridging loan.

This isn't misrepresentation, as the OP says she couldn't get a mortgage not didn't want one.

I went through something similar and ended up looking into personal loans online Estonia just to compare options. It’s tricky because lenders can be super picky, even if your income and savings look good on paper. The housing market moves faster than the loan approvals sometimes, so having a backup plan helped me feel less stressed about it all dragging out.