FTB - Deposit advice

VIGILANT22

switched_off wrote: »

Sometimes people even accuse others of telling 'porkies' and imply their information is out of date...

which 5% deposit on NB's is...........

switched_off

VIGILANT22 wrote: »

which 5% deposit on NB's is...........

You are very wrong.

15% from developer
15% from Housing Association
5% client
65% mortgage lender

Available on the open market.

Google - HomebuyDirect and learn something new

Then check with the halifax, nationwide and rbs in the morning.

captainhaggis

Do any of your friends or family have 10k in the/a bank?

When I bought my last place I didn't have the deposit (c. 30k) but my dad did. I didn't want the money from him but I got a letter from him saying he was giving me the money and would do so upon completion of my mortgage to enable me to make the payment for the property.

So I sent this letter in, got the mortgage and while that was all being processed had everything lined up with another lender to borrow, as a loan secured on another property, the 30k I needed for a deposit.

Because I was applying for both at the same time, the loan didn't appear on my credit file, so the mortgage lender was none the wiser.

switched_off

Expect zero sympathy from a lender if you tell them the deposit is coming from a relative and they find a search from the loan provider.

Saw someone once buy a new tele on a buy now and pay later only to be rescored and declined. This had nothing to do with affordability.

_Andy_

garymac wrote: »

With respect, Andy, I think I know what I can afford and what I can't!! Many thanks for the 'advice' anyway...

Badly worded on my part gary - I didn't mean the outgoing of the mortgage, I meant not having enough deposit currently.

Muhasib

switched_off wrote: »

You are very wrong.

15% from developer
15% from Housing Association
5% client
65% mortgage lender

Available on the open market.

Google - HomebuyDirect and learn something new

Then check with the halifax, nationwide and rbs in the morning.

Those figures are the best that you can get on the HomeBuy Direct Scheme, there is a financial assessment so you may not get the full 30% equity share contribution depending on the income available to service the mortgage as the Housing Association will (rightly) be keen to spread its allocated funding to qualified applicants.

Can I ask where you got the information that there is no deposit required if you are purchasing in the South??

switched_off

In certain postcodes areas, namely portsmouth and the Basingstoke area there is a lender who does not require a deposit. The lender is called the Newbury Building Society.

However, due to the fact that they are the only one, their underwriting is very strict and I am sure they will withdraw from this market upon over exposure.

benjo

_Andy_ wrote: »

Badly worded on my part gary - I didn't mean the outgoing of the mortgage, I meant not having enough deposit currently.

Im not a mortgage advisor or money person, but I cant find a single lender that will accept a loan as a deposit, (I havent checked any shared ownership/new build deals) so I think Andy is right - no you 'cant' do it (although Im sure that some people will post and tell you how they have used a loan as deposit). If you really want to be sure, ring a couple of high street lenders and ask them - I reckon they will say no.

Given that you want to buy this year, then it makes complete sense, as mentioned earlier to save the 10k needed, which you should be able to afford in a fairly short period of time, and your 10k will earn you a little interest (very little in this day and age).

But if you borrow 10k it will cost you money over the period of the loan ( could be 2k ish) - and even though you can afford it, you asked the question on a money saving forum and it would be silly if people didnt point out a great way to save yourself some money as well as meeting the lenders criteria on the source of your deposit. (Lenders can ask to see evidence of the source of your deposit).

Besides, just because you can afford something, doesnt mean you should spend your money on it - just think, you could have a nice plasma TV instead, a holiday as a reward for saving instead of borrowing, or buy me a G & T :beer:.

To summarise your question, is borrowing 10k and telling one lender it is for a car loan, while telling another lender it came from savings to enable you to buy this year the most suitable option.....

It is dishonest (some will view it as fraud) x 2
It is more expensive than saving
Saving takes longer than borrowing = you wait for your house.
Saving earns you money = you wait for your house but you have spare cash to spend when you get there.
Borrowing costs you money = no glam holiday for you

Buying your first place is really exciting, goodluck, hope it all goes well for you.

clearing_out_my_pockets

Can I ask a quick question?

You say you don't want to rent - in that case are you currently with parents? If you are and you have no savings for a deposit, presumably you also have no money for solicitors, mortgage arrangement, moving costs, furniture... Or have I misinterpreted this?