T W A U ... The Chase....from...
Film, Media & TV1 min ago
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You will declare your income to the lender.
You take the loan before you apply for the mortgage and so the lender will know what you have owing.
Assuming the above 2 are correct then you will probably find that the cost of a loan will reduce your income calculation / affordability calculation that the lender will end up reducing the loan they can give you. However if the loan is taken after the mortgage is assessed they will not know about this but you will be breaking the terms of the mortgage in that your deposit will be borrowed as opposed to whatever else you have put on the form. This is technically mortgage fraud, though I do not know in practice what the lender would do to you but may ask for the mortgage monies back (but unlikely unless you have problems paying the mortgage). Some mortgage lenders actually give you a secured loan as part of the mortgage to give you a greater mortgage amount (Northern Rock and Coventry are 2). You may however find that you can borrow the money over a long period and this will make the loan quite cheap and so it will not have such an impact on how mauch can be leant. Just make sure the lender knows you have the loan and this is fine - strictly speaking they need to know if you are borrowing to finance the deposit where you have not yet borrowed the money - so long as you declare it the lender has been given all the right information and you will not be in trouble, though as advised above it may not do you much good and the cost of a loan and a mortgage will be more than a slightly bigger mortgage.