How to get a bigger deposit??

BigTerryWogan

Can anyone help?

confusion with Guarantors?

we have enough deposit for 80% LTV.

we would like to get to 60% LTV, that would mean that we would need to come up with approx another 40K deposit?

if we could get a guarantor, i.e. parents. do they actually have to hand over the 40K for the deposit or do they just sign up for potential loses.



Natural stupidity is better than artificial intelligence

Soot2006

do they actually have to hand over the 40K for the deposit

Where else would it be coming from? You either have a deposit or you don't. You can't guarantee a deposit that you don't have ... since you don't have it.

BigTerryWogan

I guess I don't fully undetstand how it works.

can't they be guarantors against the mortgage without adding to the deposit? i.e. using parents worth with having to put more money in?

maninthestreet

BigTerryWogan wrote: »

I guess I don't fully undetstand how it works.

can't they be guarantors against the mortgage without adding to the deposit? i.e. using parents worth with having to put more money in?

If they act as guarantors, they will not have to put any money up front as deposit. However, if you fail to keep up the mortgage payments, the lender will chase your parents for these payments.

BigTerryWogan

maninthestreet wrote: »

If they act as guarantors, they will not have to put any money up front as deposit. However, if you fail to keep up the mortgage payments, the lender will chase your parents for these payments.

think that is what I was wanting to hear!

so let me put it another way and you correct me if i'm wrong.

we could possibly secure a 60% LTV without a 40% deposit if we get a guarantor?

for the record we have a combined annual income of over 75k and would be able to easily make the repayments, just can't get a 40% deposit

Sonofa

BigTerryWogan wrote: »

think that is what I was wanting to hear!

so let me put it another way and you correct me if i'm wrong.

we could possibly secure a 60% LTV without a 40% deposit if we get a guarantor?

for the record we have a combined annual income of over 75k and would be able to easily make the repayments, just can't get a 40% deposit

Nope you're missing the point. A deposit is exactly that; an amount of 'real' money that you put down against the purchase price. So in your case you are looking at a house at about 200k.

If you want to secure a mortgage at 60% LTV you need to physically hand over 80k to the seller at the point of purchase.

A guarantor only comes into things if the lender has concerns over your ability to pay them what you owe them. At 75k, on face value, you sound like you have sufficient income to afford the loan, however, I will assume that your monthly expenditure has been taken in to consideration. If your current monthly outgoings, even on this high an income, mean that you only have £25 in the bank at the end of the month (I exaggerate for simplicity) then the lender will question your ability to pay them back, on time, every month. At this point a guarantor might be taken in to account.

If you are living a life of fast cars and faster women I suggest you live like a monk for 6 months.

BigTerryWogan

oh well, can't raise the total money needed for a deposit for 60% LTV.

have 2 go back to pimp, lol

Cannon_Fodder

"to get 60% needs another 40k deposit" - so you have 40k deposit...


one sure fire way to get a 60% LTV...only go for a £100K property.

here to help...

Sonofa

BigTerryWogan wrote: »

oh well, can't raise the total money needed for a deposit for 60% LTV.

have 2 go back to pimp, lol

I take it you're not joining us then 'brother'?:D

uzubairu

Sonofa wrote: »

If you want to secure a mortgage at 60% LTV you need to physically hand over 80k to the seller at the point of purchase.

I suggest you live like a monk for 6 months.

It's really as simple as that.

Or you could take out the 80% LTV loan and overpay regularly (and save interest that way).

It really depends on how much of a rush you are in to get the loan.