Gifted Deposit Question and a general one?

uberteeb

I've been trawling through all the 'first time buyer help' type threads cause I'm a novice as well and they answer a lot of my questions. But I do have another...

...my friend told me (haha alarm bells ringing) that it is possible to secure a deposit using property you already have. Now does this in theory mean that my mother who has a paid off mortgage could release some equity in the house somehow to help me with a deposit? In principle is that allowed by lenders?

Ie if I save up £10k, my mother releases £10k from the house I then have a 20% deposit on a £100k house/flat? Is it that simple?

Basically I earn just over £25k p/a but have !!!!!! all deposit (well I've saved 4 grand in 4 months), I'm living at home putting aside £1,000 a month and want to be out of here as soon as possible.

Another more general question would be lets assume for talkings sake I have £20k for a 20% deposit on a £100k house, apart from the money to buy furniture and stuff for the house what other hidden extras will be involved with regards to broker fees and so on, just a ballpark figure?

Dont worry, I intend to take a lot of proper face to face advise nearer the time of actually buying.

CLAPTON

by 'release equity' you mean your mother will re-mortgage her house for 10,000 or get a secured loan ?
and then she gives you the 10,000
who will pay the mortgage on your mothers house

powerwin

Just on the charges question, whilst I can't give you an exact figure, it's going to be in the thousands. Here are just a few examples of charges involved with buying a house:

Mortgage Arrangement Fee - Arrangement fee charged by the lender.

Property Valuation Fee - Charged by the lender for them to value your property so they can decide whether the property is worth lending on.

Conveyancing Fees - Fees charged by conveyancer / solicitor to get the property transfer of ownership done.

These are just a few examples ...

Rgds