Loan Towards Deposit?

MajorTom_2

TrickyDicky wrote: »

If you cant save, then you probably cant afford a mortgage and all the problems that come with owning a house that your landlord currently pays for.

I get really annoyed at people making statements like this, you don't know the persons personal circumstances and saving for something takes time. Now is a good time to get on the property ladder with prices being low, if someone has to save for 2-3 years they will just be chasing their tails while trying to meet at least a 10% deposit as prices go higher.

The OH and me are about to buy, funny enough we have finance on our cars which equals the same amount as we need for the deposit. With the mortgage and all bills paid each month it will leave us with nearly £3k a month left over, does this mean just because I owe an amount equal to my deposit mean I cannot afford my mortgage? well not in the mortgage underwriters eyes!

VIGILANT22

You say you have 3k a month left over...I somehow don't feel the OP is in the same position as you otherwise they would not have posted Quote: we are saving but no-where near as fast as we would like.

If someone has 3k disposable income each month it doesn't take long to save for a deposit...not struggle.....

AmyBelle_2

Does the OP have any other debt?
Just wondering if not... then maybe he could get a little loan... and still be in a lot less debt than alot of people getting mortgages?!?!?
OP??

AmyBelle_2

This makes alot of sense....
even if the OP does not have this kind of money left of every month...

He still may be able to quite comfortably pay back a small loan as well as his mortgage.

_Andy_

No lender accepts personal loans as a source of deposit.

getmore4less

The problem seems to be how you create the deposit

1. Loans seems to be a no no.

2. Get into debt by spending so you can save more seems to be OK
The debt gets taken into account so reduces the lending you can get.

Easy to make 1. look like 2.

So to the question where has the deposit come from "savings"

cellardor

Hi people, OP here

Basically, we are both on pretty rubbish money at the moment (hopefully there will be an increase in this soon) and we currently have no debt (apart from 1 student loan)

Is it worth getting someone else to get the loan and then pay them back then?

TMoose

TBH, if you are pretty rubbish money at the moment, you're unlikely to get a very big mortgage, which means that your deposit wouldn't need to be very big.

Of course, it will limit what (if anything) you can afford to buy.

VIGILANT22

cellardor wrote: »

Hi people, OP here

Basically, we are both on pretty rubbish money at the moment (hopefully there will be an increase in this soon) and we currently have no debt (apart from 1 student loan)

Is it worth getting someone else to get the loan and then pay them back then?[/QUOTE]

I thanked you and didn't mean to as I meant to reply...:)

You are creating debt to service debt not a good idea.....If you're on "rubbish money" taking the reponsibility of a mortgage is maybe not the right thing at the right time....You have the rest of your life ahead of you to plan and buy...

Conrad

A client recently took out a loan, obstensibly for home improvments. The lender accepted this was the reason for the loan. She had no cash deposit but handed the lender a letter apparantly from her grandparents saying this was the deposit source.

Of course in an ideal world you should have your own cash, but many many first time buyers borrow, or complete on a purchase with a loan from Mum, then take out thier own loan to repay her the day after they move into new home!

Remember, the Labour MP Peter Mandelson borrowed his deposit and the Brittania BS found out, but nothing happened - he simply carried on paying the mortgage.