can i use a personal loan towards a deposit for a buy to let

[fstruthers]

if i get the buy to let with another bank..(the bank that lent me the personal loan won't know what i'm using them money for.)

 

[JohnBoy]

the ethical implications aside, personal loan rates are relatively high so you could end up borrowing the deposit at twice to three times the rental yield on your investment property - hardly a winning investment.

i take it that you cannot borrow legitmately? why not? if you cannot borrow because you do not earn enough or because your do not have adequate equity in your PPR then you cannot afford to do this!

 

[monkeyboy]

It can be done. My Bro, a student, borrwed 20k interest free for 4 years medical loan as a deposit for an apartment, of which I am guarntor on his mortgage as he has no income.
Tenant pays bulk of mortgage, folks help pay the mortgage for his share instead of giving him rent as they would be doing otherwise.

Only draw back is if there is a crash you may be paying back a mortgage of higher value than the property is worth.

I do not see the numbers stacking up on a buy to let though with a normal personal loan as the repayments on this over say 5 years coupled with the mortage, less tax on rental income will make this prohibitive.
Crunch the numbers seriously....I cant see it working for a buy to let.