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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4546
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I am purchasing a second property and have the mortgage offer

Customer Question

I am purchasing a second property and have the mortgage offer in place. However, a small part of thee deposit was to be made up from a further advance on o e of our BTL properties. However, Lloyds group have refused the further advance as they now no longer do further advances if you have more than 3 properties with them!

My question is this: can I take out a personal loan to cover my shortfall or will this be in breech of the mortgage conditions? Is there a point at which I can or cannot apply? Will Natwest be made aware? I have to lay a £81k deposit and I only have £64k in hand now.
Submitted: 3 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 3 years ago.
Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

From what my understanding goes, you need to fill up the shortfall in the money that you are making as downpayment.

No, if you go for a personal to fill the short fall, it would NOT be any kind of breach of conditions, unless expressly mentioned. You are free to make up for your deposit / down payment / initial payment from your sources and the lender is least concerned from where you make it from.

So, taking a personal loan to fill up the short fall should not cause a problem to you.

I am sure this would help.

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Warm Regards,