united-kingdom banking solicitor borrowing
Can I use a loan for something other than what I said I&#39;d use it for?
<p>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.</p>

<p>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?</p>

<p>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?</p>

<p>Well ... the crime of fraud and the tort of deception.</p>

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