We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Can I use savings as a deposit when I remortgage
johncolescarr
Posts: 294 Forumite
Stupid question,
can I use savings as a deposit if I choose to re mortgage or move home?
I am currently saving my way out of negative equity by mortgage overpayments and building up cash savings and I want to be able to use the cash savings as a deposit when I move house, as if it were my first home. In theory it should be okay but looking for some reassurance.
Thanks in advance for a question I should know!
John
can I use savings as a deposit if I choose to re mortgage or move home?
I am currently saving my way out of negative equity by mortgage overpayments and building up cash savings and I want to be able to use the cash savings as a deposit when I move house, as if it were my first home. In theory it should be okay but looking for some reassurance.
Thanks in advance for a question I should know!
John
Mortgage £120K, monthly overpayment £600, 18 years and £100K saved
0
Comments
-
when you move you need to be able to pay off the loan you took out to buy the house. so the answer to your question is - it depends on what the property market is doing when you sell - you may make a profit - you may not. you may have to subsidise your repayment from your savings - you may not. What % of the value of the property's market value is your loan at present ?0
-
when you move you need to be able to pay off the loan you took out to buy the house. so the answer to your question is - it depends on what the property market is doing when you sell - you may make a profit - you may not. you may have to subsidise your repayment from your savings - you may not. What % of the value of the property's market value is your loan at present ?
I estimate my LTV between 96-110%, depending on the property value. But with savings this is reduced to 90-103%.
I have estimated that with our current overpayments and savings, I'll get to 85% LTV in 1-2 years time, depending on if the property increases in value at all.
I'm just not sure of the procedure when we come to move. I am worried that there may be a penalty (other than the exit fee) if I use my own funds to help settle the debt in addition to the house sale.Mortgage £120K, monthly overpayment £600, 18 years and £100K saved0 -
i have never heard of penalties for using your savings to pay off a loan. if you were offering a substantial amount of money your solicitor might need a paper trail to know where it came from under the money laundering regs.
mortgage lenders want their money back - where it comes from is none of their business as long as it aint drug money !0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.7K Work, Benefits & Business
- 600.2K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.4K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards