is this a good deal

opinions4u

Halifax/Bank of Scotland do this, as there is a mortgagee protection clause meaning they get their cash back from any sale before the other parties. i.e. in this scenario it would need to seel for more than 35% less than the original value for Bank of Scotland to lose any of their capital

And that is absolutely the key. If there is such a clause then away we go. The infomration provided doesn't make it clear, so your expertise and experience makes it promising for the OP.

The OP says they went in to a Bank of Scotland branch. So they will be using Halifax for the mortgage.

shellnapier

luckyfool wrote: »

Not sure why you think it is particularly unusual for banks to use the local authority equity as a deposit? While some lenders/most would require a minimum 5% coming from the applicant so they have some "skin in the game", it is also common for lenders to use the government equity as a deposit, and give access to low ltv deals based on that. Halifax/Bank of Scotland do this, as there is a mortgagee protection clause meaning they get their cash back from any sale before the other parties. i.e. in this scenario it would need to seel for more than 35% less than the original value for Bank of Scotland to lose any of their capital. I do believe Halifax at least still credit score the cases as if they are 100% (so BofS may do the same thing), based on the lack of a true deposit and the resulting higher risk of arrears, so this all may be a moot point.

If you are seriously considering doing it then it might be worth getting it approved in principle, I believe BofS do a soft footprint so this should not effect your credit score one way or the other. As the lenders are applying very tough scores at the moment there is not any guarantee that you would pass.

Luckyfool

some of that made sense.

its a halifax mmortgage.. and they did a credit score check when we got there. and told us it was very senstive etc at the end told us it came back fine, so that oart was fine. they gave us this big green pack home, with all teh paper work, what the fiqures would be , all the key facts etc, and all isnruance detials and the thing call the Halifax Mortgage Promise... so i was under the impression
if we get the house, we go back to them and pay for a valuation and as long as it come backs at 140k and not less, that gets teh wheels in motion... and we get the mortgage of what we have agreed??

or am i really niaeve

shellnapier

shame no one from halifax mortgae workeer on here to clairfy,. although i have asked our advisor 3 times!!

shellnapier

I just thought i woud update all
We have been accpeted for the house, and are going ahead with mortgage with halifax and we needed no deposit

abinanthanb

shellnapier wrote: »

I just thought i woud update all
We have been accpeted for the house, and are going ahead with mortgage with halifax and we needed no deposit

Good luck to you! :beer:

shellnapier

thank you so much im so excitedf to be moving house hopeuflly are family home for the next 20 years