Mortgage advice?

[Bittersweet]

A long shot but a fantastic deal has come up just down the road from me on a 3 bed new build. Get given 20% from help to buy scheme, 75% mortgage and 5% from me and oh.

But we don't have any savings because we did but then we moved into this rented house to bail my mum out

Is there any way to get a loan of some value to get the deposit? OH will earn a load of money this year coming as he will be working away and I will go into full time employment so we can pay loan off within 18months.

 

[LuckyYem]

Several years ago I used to work for a well known bank, I'm not sure if its the same since the arse fell out of banking but it used to work like this; you could have a loan to make up your deposit (or for whatever reason) but it would affect your 'free' income which could in turn affect how much you could borrow on the mortgage. Each bank, building society have a set amout that you must have left over after mortgage payment, loans, credit cards and finance have been paid each month. The bank I used to work for deemed that amount to be £750pcm for a couple. So if you needed a large loan for the deposit even spread over a long term coupled with the mortgage repayments that could eat into your free income. Also with the issues around banks at the moment I'm not sure they would agree a loan to use as a deposit (although you can tell them its for anything really). Sorry if the above is out dated, hopefully somebody else will be able to help x

 

[Bittersweet]

The mortgage I would need is 75% (about £395 per month) deposit £7,500 me and oh earn £2800 currently per month dunno if that helps? X

 

[LuckyYem]

I would say on the face of it your free income would be okay (but I have been out of banking a good few years). I would suggest getting in contact with an independant mortgage advisor and they would be in a better position to advise if they think its possible. Just an aside how long have you been in your current house and how long is the tenancy would you have to pay early exit fees?

 

[Bittersweet]

The rent would finished around the same time of moving in and 1 month notice

 

[Pearls18]

The building society my mum works for wouldn't let you use a loan as a deposit, we have access to a military scheme that gives out an interest free loan and they wouldn't even accept that, part of the reason the recession happened was because lenders giving mortgages to people who couldn't afford their repayments which came down to such small deposits, there were even 105% mortgages back then!! Like the PP says a lot of it is done on your disposable income these days and they will want to know about any debts etc. I personally would not take out a bank loan for the deposit, tbh I would be amazed if there were many responsible lenders out there that would accept that. Definitely try though because I've heard the help to buy scheme is winding down?

 

[catty]

My friend got her mortgage agreed first and then took out rhe loan, you only need the money a few days before the sale goes through. I would be to worried to do this however

 

[Bittersweet]

We are going to look tomorrow but won't be in a position til about June time anyway as we feel it's better to get the deposit together without a loan and I will be working full time so I guess that that's a good idea instead.

Thank you x

 

[R_x]

I always thought deposits could only be gifted.
Also is this the scheme where you have to pay the 20% back in so many years? X

 

[Mummy Bean]

My bank works it out two fold firstly you get a multiple of ur joint income minus any debt (student load, loans, credit cards, car finance). Then like lucky Yem said how much you can afford to pay back monthly. So with u maybe able to borrow say 150k based soley on ur income but due to childcare costs or high travel expenses you cant afford the monthly repayments.

 

[shellideaks]

I got a £7,500 loan through Tesco (just did it online) for our deposit. We pay back £150 per month and with interest it works out that we'll of paid back £8,500 at the end. We were desperate to buy and stop renting so losing out on that £1000 seemed worth it.

 

[smileyfaces]

I got a £7,500 loan through Tesco (just did it online) for our deposit. We pay back £150 per month and with interest it works out that we'll of paid back £8,500 at the end. We were desperate to buy and stop renting so losing out on that £1000 seemed worth it.

Did the bank notmask where you got your deposit? I always thought they wouldnt accept the deposit if it was funded through a loan! Good to know that some do!!

 

[shellideaks]

I got a £7,500 loan through Tesco (just did it online) for our deposit. We pay back £150 per month and with interest it works out that we'll of paid back £8,500 at the end. We were desperate to buy and stop renting so losing out on that £1000 seemed worth it.

Did the bank notmask where you got your deposit? I always thought they wouldnt accept the deposit if it was funded through a loan! Good to know that some do!!

No one at all asked me where the deposit came from. It got transferred straight from Tesco into my bank a couple of days after signing the contract and it sat there for a few of weeks until I had to give it to the solicitor. We bought the house through Reeds Rains (mortgage with Santander) and they never questioned it.

 

[smileyfaces]

Double post.

 

[smileyfaces]

I got a £7,500 loan through Tesco (just did it online) for our deposit. We pay back £150 per month and with interest it works out that we'll of paid back £8,500 at the end. We were desperate to buy and stop renting so losing out on that £1000 seemed worth it.

Did the bank notmask where you got your deposit? I always thought they wouldnt accept the deposit if it was funded through a loan! Good to know that some do!!

No one at all asked me where the deposit came from. It got transferred straight from Tesco into my bank a couple of days after signing the contract and it sat there for a few of weeks until I had to give it to the solicitor. We bought the house through Reeds Rains (mortgage with Santander) and they never questioned it.

Wow sounds fab how long ago was that?x

 

[shellideaks]

I got a £7,500 loan through Tesco (just did it online) for our deposit. We pay back £150 per month and with interest it works out that we'll of paid back £8,500 at the end. We were desperate to buy and stop renting so losing out on that £1000 seemed worth it.

Did the bank notmask where you got your deposit? I always thought they wouldnt accept the deposit if it was funded through a loan! Good to know that some do!!

No one at all asked me where the deposit came from. It got transferred straight from Tesco into my bank a couple of days after signing the contract and it sat there for a few of weeks until I had to give it to the solicitor. We bought the house through Reeds Rains (mortgage with Santander) and they never questioned it.

Wow sounds fab how long ago was that?x

Around February last year. We completed on the house March 2012. x

 

[catty]

As far as im aware the reason people sometimes cant get a looan to pay the deposit is because to get a mortgage the mortgage company will do credit checks, if it shows you owe lots of money suxh as a loan they might not give you a mortgage. Its best to wait until these checks have been completed then take the loan out.