Mortgage deposit advice , UK - URGENT ! !

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Hey , with money being so tight how are couples getting the deposit together ??

Friends of ours were going to get a £10,000 loan over 7 years and use that as the deposit but when they mentoned it to their mortgage advisor they said something like " that's ok as long as they lenders don't find out ."

Is it actually illegal to do it or is it just frowned upon ?


Is there a "way around " this predicament - would they have to put the loan in another bank account so the lenders don't know - would the lenders automatically be told that the couple had appied or got the loan ??

What's the deal with these "gift loans" or whatever they are called - some deal worked out with the seller of the house ???


They can easily afford the mortgage and the loan but can't wait the 6 or 7 months to save the deposit .

Mortgage interview tomorrow !

Would you be borrowing 100% of the property value (combining the loan and mortgage)?

As part of your mortgage application you will be asked about your finances, which will include any debts you have. Not declaring the loan would be dishonest, although I don't know if it is illegal.

Assuming the loan is not secured on the property (which the mortgage lender would definitely need to agree to) then the mortgage debt would have priority over the loan.