Hi John,

assuming someone actually wanted to play by the rules, can you please tell me which, in mortgage lenders eyes, are acceptable, legal ways to raise deposits these days?

When i have asked this question about recently, i have just had several dodgy schemes suggested to me. I haven't got enough equity to do anything with a buy to let which i already own. I do have equity in my own home but i am currently on a 2.5% variable with Nationwide, so i don't really want to remortgage, and i believe Nationwide don't allow further advances for capital raising. Is a secured loan, with a second charge on my home acceptable?

Many thanks.

Hi Almighty,

To start off I would always advise to play by the rules!

There are lenders that are happy with using a secured loan fir your deposit. In fact the most common way people built portfolios in the old days was buy a property and remortgage it 6 12 months later to get their deposit back and then start again.

There are of course some lenders that insist it has to be from savings.

In your situation you could look at a secured loan although as soon as you possibly can I would merge it with your mortgage. Although as you say as you have such a low rate it may have to wait until rate rise before its worth you merging

Regards
John

Hi John,

thanks for taking the time to answer my question. If i could just ask one more?.....

Would Birmingham Midshires, The Mortgage Works or Northern Rock be a okay with raising a deposit from a second charge secured loan on my home?

Many thanks.

Well for example Northern Rock would be OK with this and they would want to see either the loan agreement or the money deposited in your bank account by way of a bank statement

sorry for the delay I just noticed it!