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    • TexasBliffEm
    • By TexasBliffEm 11th Jul 17, 9:13 AM
    • 6Posts
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    TexasBliffEm
    Size of deposit leverage
    • #1
    • 11th Jul 17, 9:13 AM
    Size of deposit leverage 11th Jul 17 at 9:13 AM
    Hi all,

    I am in negotiations to buy a house (circa £195k). I have used the fact that I have £120k to put down as a deposit (to strengthen my hand in negotiations).

    If I were to get my offer accepted - is there anything to stop me putting down £50/60k and taking a mortgage our for the remaining? Is this seen as sneaky or does it not matter so long as the mortgage is approved?

    Thanks in advance

    Matthew
Page 1
    • zx81
    • By zx81 11th Jul 17, 9:19 AM
    • 13,685 Posts
    • 14,156 Thanks
    zx81
    • #2
    • 11th Jul 17, 9:19 AM
    • #2
    • 11th Jul 17, 9:19 AM
    You can put down as large a deposit as you want, as long as the mortgage is approved on that basis.

    The vendor doesn't care where the money is coming from, as long as they get it.
    • ACG
    • By ACG 11th Jul 17, 9:23 AM
    • 15,535 Posts
    • 7,880 Thanks
    ACG
    • #3
    • 11th Jul 17, 9:23 AM
    • #3
    • 11th Jul 17, 9:23 AM
    They will not know that you are putting down a smaller deposit (assuming you do not use the estate agents mortgage broker/solicitor).

    The agent may ask for proof of deposit however, so if you have it and put down less it should be fine. If you do not have it, then it may get picked up.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • AnotherJoe
    • By AnotherJoe 11th Jul 17, 9:58 AM
    • 7,397 Posts
    • 7,935 Thanks
    AnotherJoe
    • #4
    • 11th Jul 17, 9:58 AM
    • #4
    • 11th Jul 17, 9:58 AM
    Hi all,

    I am in negotiations to buy a house (circa £195k). I have used the fact that I have £120k to put down as a deposit (to strengthen my hand in negotiations).
    Originally posted by TexasBliffEm
    ???????

    You "I want £10k off as I have a bigger deposit"
    Me "eh!? Why would I care?"

    I'd also think that with that strange idea, what else might you come up with later, so I'd avoid you as a buyer unless I had no alternative.

    Ps if you have found an equally deluded vendor who thinks this makes a difference, then they will have no idea when the transaction concludes, what proportion of money comes from the lender and what comes from you.
    Last edited by AnotherJoe; 11-07-2017 at 10:02 AM.
    • TexasBliffEm
    • By TexasBliffEm 11th Jul 17, 10:36 AM
    • 6 Posts
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    TexasBliffEm
    • #5
    • 11th Jul 17, 10:36 AM
    • #5
    • 11th Jul 17, 10:36 AM
    Lol. Cbf biting
    • David White
    • By David White 11th Jul 17, 10:52 AM
    • 835 Posts
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    David White
    • #6
    • 11th Jul 17, 10:52 AM
    • #6
    • 11th Jul 17, 10:52 AM
    Can't see anything wrong with what you're doing and despite some of the above comments I can actually see the reason behind your logic.

    If I was selling a property I'd feel a bit more confident selling to someone with a large deposit than someone with 5%.

    Whilst obviously not the only factor, obtaining a mortgage is arguably easier with a large deposit.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • TexasBliffEm
    • By TexasBliffEm 11th Jul 17, 11:20 AM
    • 6 Posts
    • 0 Thanks
    TexasBliffEm
    • #7
    • 11th Jul 17, 11:20 AM
    • #7
    • 11th Jul 17, 11:20 AM
    Thanks David. Yeah that's what I thought. My position is more attractive to a seller than 5pc deposit. Fear of falling through etc
    • kingstreet
    • By kingstreet 11th Jul 17, 11:21 AM
    • 32,081 Posts
    • 17,170 Thanks
    kingstreet
    • #8
    • 11th Jul 17, 11:21 AM
    • #8
    • 11th Jul 17, 11:21 AM
    If I was selling a property I'd feel a bit more confident selling to someone with a large deposit
    Originally posted by David White
    ... so would I, but I wouldn't change the price I'm prepared to accept.

    £50k deposit or £120k deposit - both produce a low enough LTV to make me more confident.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • David White
    • By David White 11th Jul 17, 11:45 AM
    • 835 Posts
    • 360 Thanks
    David White
    • #9
    • 11th Jul 17, 11:45 AM
    • #9
    • 11th Jul 17, 11:45 AM
    ... so would I, but I wouldn't change the price I'm prepared to accept.
    Originally posted by kingstreet
    Totally agree, I wouldn't either....

    That said, the unknown variable is how motivated the seller is to move the property.

    I think it's reasonable to say that a highly motivated seller would reduce the price a bit if they thought it would be a quick sale.
    I am a Mortgage Broker
    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • AnotherJoe
    • By AnotherJoe 11th Jul 17, 1:25 PM
    • 7,397 Posts
    • 7,935 Thanks
    AnotherJoe
    Thanks David. Yeah that's what I thought. My position is more attractive to a seller than 5pc deposit. Fear of falling through etc
    Originally posted by TexasBliffEm
    Is that the Your position ? As you wrote originally, it implied you are looking for reduction in price on the basis of your deposit. Very different to being preferred bidder
    • Thrugelmir
    • By Thrugelmir 11th Jul 17, 6:36 PM
    • 55,569 Posts
    • 48,941 Thanks
    Thrugelmir
    Thanks David. Yeah that's what I thought. My position is more attractive to a seller than 5pc deposit. Fear of falling through etc
    Originally posted by TexasBliffEm
    You won't be told the position of other prospective buyers though. Odds are that any other buyer will have a better deposit than this.
    "Wide diversification is only required when investors do not understand what they are doing." - Warren Buffett
    • TexasBliffEm
    • By TexasBliffEm 12th Jul 17, 8:54 AM
    • 6 Posts
    • 0 Thanks
    TexasBliffEm
    Is that the Your position ? As you wrote originally, it implied you are looking for reduction in price on the basis of your deposit. Very different to being preferred bidder
    Originally posted by AnotherJoe
    Never mentioned anything about reduction in price. Anywhere. Go back under your bridge.
    • LKRDN_Morgan
    • By LKRDN_Morgan 12th Jul 17, 10:10 AM
    • 272 Posts
    • 815 Thanks
    LKRDN_Morgan
    Never mentioned anything about reduction in price. Anywhere. Go back under your bridge.
    Originally posted by TexasBliffEm
    so why mention having a 120k would strengthen your hand in negotiations? Negotiating what? Fixtures and fittings? A fully furnished houses? Or the price? Hmmm I wonder which it could be!

    Try to make your OP a bit clearer next time. Or perhaps just respond to questions like a normal person instead of the 'I don't like what you said therefore you're a troll' brigade
    • jamesperrett
    • By jamesperrett 12th Jul 17, 1:08 PM
    • 661 Posts
    • 327 Thanks
    jamesperrett
    The most important factor is whether you have a property to sell. If you don't then you are automatically in a stronger negotiating position whether you have a 5% or 50% deposit.
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