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Borrowing for deposit
jimfitton
Posts: 2 Newbie
Hi, any adviceplase.
I am a homeowner, currently have a mortage, but want to move. Due to lack of equity I will have little or no deposit available, and can't find anyone offering more than 90% LTV. Affordability is not a problem, my income multiples are fine for above what I need to borrow, but I've not got the 10%.
Any advise, is it prudent to borrow the 10% elsewhere, I'd need around 20k, which would need to be secured on the house I'm planning to sell.
Help!
I am a homeowner, currently have a mortage, but want to move. Due to lack of equity I will have little or no deposit available, and can't find anyone offering more than 90% LTV. Affordability is not a problem, my income multiples are fine for above what I need to borrow, but I've not got the 10%.
Any advise, is it prudent to borrow the 10% elsewhere, I'd need around 20k, which would need to be secured on the house I'm planning to sell.
Help!
0
Comments
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You have no equity with which to secure a loan to the current house.
If you got a loan somehow, the move would not be possible in today's financial climate. Lenders would spot the loan, and deem you to be at 100%+ LTV.
It is not prudent to do so anyway, imo, as you risk going further into negative equity. If something happened to your income, you'd be repossessed and pursued for the shortfall. Which could happen now, true, but you would owe an extra £20k.
If affordability is fine, you should be able to save, save, save.0
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