100% mortgage required

gibby4

mmmmmmmmmmmm

herbiesjp

Are you being gifted the deposit? Value 100k and purchase at £50k?

gibby4

i ambeig gifted the deposit

dwsjarcmcd

You would be better going for a 50% loan i.e £50k loan on £100k property) That way you would get a better deal (no Indemnity premium) and have more chance with a mainstream lender.

gibby4

didnt know i could get a loan for property. Is indemnity premium calculated as a % of value or purchase price or one off charge. Also If I got a loan and wanted to sell the property or move relatively soon (within a year) would their be any early repayment penalties? thanks

HelpWhereIcan

Some, but not all, lenders will allow a gifted deposit of that amount (I take it the property is a 'concessionary purchase' from family) You will need to choose your lender carefully as some will only offer you 100% deals where others will make any of their deals available to you, avoiding Higher Lending Charge and getting a better rate as dwsjarcmcd says.

gibby4 wrote:

Is indemnity premium calculated as a % of value or purchase price or one off charge.

Generally, it is expressed as a % of the loan amount above a certain level. In other words every lender is slightly different in their calculation, but it is a one off charge.

gibby4 wrote:

Also If I got a loan and wanted to sell the property or move relatively soon (within a year) would their be any early repayment penalties? thanks

To do this you would need to elect for a deal with no ties at all from the start.

Hope this helps