I'd like to purchase some grazing land. I'm half way there with the funds and thought of covering the remaining cost with a loan. This would be a personal loan from a UK bank and not secured against anything. However, when searching and comparing each bank they ask for the purpose of the loan, of which a land purchase is not an option. I phoned a couple banks and was told they didn't supply loans for such purposes.

So... what is to stop me from getting a loan and telling the bank it's for buying a car etc. then using the money to buy the land?

Secondary to what the bank may have to say, what would a solicitor say if I said the source of funds was from a personal loan. Would they contact the bank and check the purpose?


Well ... the crime of fraud and the tort of deception.

If you say you will do X and enter a contract on that basis knowing that you won't then that is fraud and it carries gaol time. Your bank could also revoke your contract and sue for damages.

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