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Mortgage/Deposit/New Build questions & dilemma!
sandford6016
Posts: 162 Forumite
Hi,
Our 1 bed flat has been on the market for a year now and so far, no luck. Over the weekend we explored a new development where some developers are offering 'part exchange' on your current property. We are waiting for them to come back with an offer. We desperately want one of these new builds as it is perfect for our needs, but can't decide the best way to go, assuming they come back with a reasonable offer. Here are the facts and figures that hopefully someone can make sense of and give some advice!
Current mortgage: £115,000, property currently marketed at £129,950
Incomes: £46,000 (£63k+ with overtime) and £24,000
No bad credit or outgoings
Value of the new build 3 bed townhouse: £269,000 (hopefully they'll take a lower offer?)
Now, the tricky bit comes when you talk about our available deposit! We currently have £3,000 only in savings (and this was being set aside to pay for our £6,00 wedding in December). So, we need to make some profit on the sale of the flat. There is a possibility of borrowing or being given some money from our parents, maybe up to £20,000. From looking at various mortgage calculators on the internet, paying the mortgage will be no problem at all, it's just that we don't have a massive deposit in our pockets at the moment. Do we look at a bank loan to provide a deposit?
I know this is a lot of info, but we really want this house! By the way, it's currently not built, but would be completed and available for September. Anything we can do?!
Thanks in advance.
Our 1 bed flat has been on the market for a year now and so far, no luck. Over the weekend we explored a new development where some developers are offering 'part exchange' on your current property. We are waiting for them to come back with an offer. We desperately want one of these new builds as it is perfect for our needs, but can't decide the best way to go, assuming they come back with a reasonable offer. Here are the facts and figures that hopefully someone can make sense of and give some advice!
Current mortgage: £115,000, property currently marketed at £129,950
Incomes: £46,000 (£63k+ with overtime) and £24,000
No bad credit or outgoings
Value of the new build 3 bed townhouse: £269,000 (hopefully they'll take a lower offer?)
Now, the tricky bit comes when you talk about our available deposit! We currently have £3,000 only in savings (and this was being set aside to pay for our £6,00 wedding in December). So, we need to make some profit on the sale of the flat. There is a possibility of borrowing or being given some money from our parents, maybe up to £20,000. From looking at various mortgage calculators on the internet, paying the mortgage will be no problem at all, it's just that we don't have a massive deposit in our pockets at the moment. Do we look at a bank loan to provide a deposit?
I know this is a lot of info, but we really want this house! By the way, it's currently not built, but would be completed and available for September. Anything we can do?!
Thanks in advance.
:T If you don't have anything sensible to say, don't say it! :T
0
Comments
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A bank should not be providing a loan for a house deposit and a mortgage lender should not accept this as the source of a deposit. A family gift, however, is OK
Kavanne
Nuns! Nuns! Reverse!
'I do my job, do you do yours?'0 -
Surely they wouldn't know though? The bank would put the cash into my account, mortgage company takes it out of the account?!:T If you don't have anything sensible to say, don't say it! :T0
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sandford6016 wrote: »Surely they wouldn't know though? The bank would put the cash into my account, mortgage company takes it out of the account?!
You would have to state any debts you had on your mortgage application. So they would . 'We took out a 20000 personal loan a week ago which is coincidentally exactly the same as the amount we are putting down as our deposit!!'Kavanne
Nuns! Nuns! Reverse!
'I do my job, do you do yours?'0 -
Oh, ok, got you now!
Is there anything else you can think of that we could do?! It's so frustrating that we can afford to pay the mortgage each month but they penalise you because you don't have savings! How do they expect people to get ahead?!:T If you don't have anything sensible to say, don't say it! :T0 -
They DON'T. They WANT you to save. Are you not aware of the credit crunch?!Kavanne
Nuns! Nuns! Reverse!
'I do my job, do you do yours?'0 -
I am fully aware of this pathetic credit crunch. I've actually never been so rich, so I say bring it on!! We're just not rich in savings right now so we can buy that house right now! Any sensible suggestions?:T If you don't have anything sensible to say, don't say it! :T0
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Even the £20k isn't going to be enough deposit.
As has been said above, bank loan isn't an option.
Unfortunately a house of this value isn't going to be viable for you at the moment with such insufficient deposit.0 -
Crazy! a joint income of over £80k and our sh#t country penalises you for wanting to move up the ladder and live a nice lifestyle! Time to move abroad to somewhere that treats it's citizens with respect I think.:T If you don't have anything sensible to say, don't say it! :T0
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With a joint income of 80k you could save up for a 10% deposit together within a year. Everyone is in the same boat and no other country is going to treat you different. You'll find because you've not been in the country long enough, you can't even get a mortgage!Kavanne
Nuns! Nuns! Reverse!
'I do my job, do you do yours?'0 -
It appears the OP has a gross joint income of about £90k and cannot save a deposit. Does not add up to me.0
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