Timing worries

Tecca_2

We've just had an offer accepted on our first time buy and things seem to be going too fast. The problem is, we were only able to get a 95% mortgage and have no savings. I thought that the best thing to do would be to extend an existing graduate loan but when I rang them up they said that they wouldn't be able to until I'd made 4 payments (I'd recently taken it out to pay off my credit card before this house buying thing started), this won't be until at least 26th October.
There is no chain on the house we want and we are renting at the moment, we are with conveyancing warehouse who are really fast according to all the reviews I've read and the little experience we have. Our mortgage adviser knows that we need to stall things a little so we can get the loan in place for the deposit, but even so I don't think he will be able to stall it for that long - what do you think?
I feel so sick thinking about it all, I really don't want to lose this house. I'm very worried that for some reason I won't be able to get more of my graduate loan out, I was refused a loan from Sainsburys the other day.
I know this all sounds stupid, but I honestly thought that I would be able to extend my grad loan before 26th October and it would all be in place by now.

chadfield

No expert knowledge to provide but had the following thoughts:

1. Are you sure that you can't get a 100% mortgage? Or is it the interest rate that is putting you off?

2. Do you have available credit on your credit card now that you have paid it off? If so, you could put most of your spending on that over the next couple of months so that you can build up cash in your current account. Downside of this is that you will be left with a loaded credit card, but you can always try to refinance this into a loan in a few months time.

3. Any chance of borrowing from family with agreed timetable for repayment?

4. You need to be really careful with any further loan applications that you make. My understanding is that every unsucessful one impacts on your credit rating and so can compound matters.

5. If your only feasible option is waiting until 26 October, you may need to consider whether you want to take the risk of waiting and then being turned down then when you have incurred further fees. Also, do you know whether the bank will be happy to lend you cash for the purpose of a deposit? You will need to disclose the reason for the loan when you apply.

Hope it sorts itself out

Chris

cattie

I don't have any advice that will help you regarding the deposit, but only mention something that you may not want to hear.

If you don't have money for a deposit & have no savings, only debt then think very, very carefully whether you should be thinking about buying a property right now at all. Money is obviously very tight for you.

Presently interest rates are very low, but how will you cope when they rise? Also with house or flat owning, you always need a bit of cash behind you for when something goes wrong & needs repair or replacement, & believe you me this can happen only too often.

I don't want to put a dampner on things but lots of people are taking a big chance & jumping in way over their heads just to get on this mythical property ladder without considering that repossession in a few years can be a real possibility with higher interests rates.