Is a personal loan for buying a house sensible?

Good evening everyone,

we are interested in a house that we currently cannot afford due to insufficient equity (the installment is not a problem, but the price of the house, + additional costs + renovation is too high for the banks due to the loan-to-value ratio (121 %)). Now we have the opportunity to get a private loan of €70,000 at 2.5 % interest from a private person. The only conditions are: repayment in 8 years and registration of a land charge in the land register (subordinate to the bank).

Is there anything against this? Do you need any more information to give an answer?

Thank you very much for your replies.

Best regards Dr. Haus2019

Whether you should finance over 100% I don't know, you don't write anything about that either.

Regardless: There are also insurances that accept subordinated positions, it doesn't have to be a private person. An acquaintance arranged it that way through a small broker, at significantly better conditions than 2.5%. I would also prefer that over borrowing money from someone I might have some kind of relationship with.

Why Not

I ask myself that too? I am naturally skeptical and look for the mistake! But at the moment I cannot find it.

The bank would count that as equity, right?

Yes, it would count as equity. It's the same with our loan from Labo.

How much loan do you still need then? So are the 70k enough for all additional costs?

Would cover the entire incidental purchase costs and still 30% of the renovation costs.

Thank you already for the previous answers.