Want to buy a repossessed house...advice please

FirstTimeSaz

Hi there

I was looking for some advice in regards to getting together my deposit.

My partner and I are really wanting to buy, i know i'll get lots of messages saying why not wait a while etc etc..... but we've found a house that's perfect, the only problem is it is a repossession, this means we'd have to move quickly.

The house is a 3-bed that will need a cosmetic facelift but no major work, with it being a repossession the price is good. but we would have to move quickly and our deposit has not come through yet.

We are in a descent position otherwise, my partner owns half a house but would not be selling that yet. When he eventually does he'll have about 10k from that.
We have a 20K deposit that has come out of shares, only problem is this isn't available for at least another 6 weeks

Would it be possible do you think to get a loan out, such as a personal loan or bridging loan to put down for the house? We would need minimum 10K, and then this could be paid off in 6 weeks when the money comes through. Obviously there would be early repayment charges applicable here.
Or do you think i'm just going to have to let thishouse pass by and hope theres something just as good out there in a few months.

Thanks in advance for any help

Premier_2

Why is it taking 6 weeks to obtain the money from the sale of the shares? Even if you held the shares in certificated form, most stockbrokers deal on a T+10 basis meaning you should get your money in 2 weeks. (and if you sold today, you'd have a sale contract by tomorrow or Friday at the latest showing the funds are due to you)

When making an offer on the property, you'll probably need to show you are in a likely position to proceed, i.e. likely to obtain a mortgage for the desired amount and have funds available to make up the difference. This is usually by using the EA's financial advisor (although you are not obligated to use them for actual services, just to show you are in a position to proceed)

If you have to borrow to get the deposit, then that will usually decrease the amount of mortgage offered (lenders are keen to know where the balance is coming from).

I would suggest if you can't get the money for the shares for 6 weeks, you leave off for 4 weeks and then make an offer. You usually have a couple of weeks to exchange, by which time you'll have the funds for the deposit (and you should have some documentation to be able to show it's available by then too)

FirstTimeSaz

Hi

Thanks for the reply.

The deposit is coming from some shares that my brother has, sort of a gifted deposit, as he would like to invest it in property and help me to get on the property ladder. he's said it would take about 6 weeks but i dont quite know the details.

We know we could get the mortgage, we have a meeting with our IFA tonight. Its just with it being faster moving we will have a shortfall on the deposit.

I know i'm probably going to have to wait and we'll probably end up missing out on this house. It's just heart trying to overrule me thinks.

We wouldnt have any problem getting the 10k and then paying it back when the money comes through, its just whether it's a good idea or not