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Alternative ways of putting together a deposit..
toxi
Posts: 31 Forumite
Just wondering if anyone can come up with any bright ideas...
I have a rental property (160k) which I don't want to/can't afford to sell. LTV is 75% and bank won't allow me to extend borrowing as they won't go to more than 75% on a rental property.
I'm currently renting elsewhere (another town altogether) and have found a lovely place which is very affordable. New place would be approx £100k. Even on a 100% mortgage (which I know you can't get), the repayments would be about the same as my current rent, so I know I can afford it. I live alone, so council tax, utilities are still within my budget.
So, my problem is how to get the deposit together! I'd like to put down 20% to have more options re mortgages and also I know that the rates would be better than if I put down 10%. At a stretch, I'd definitely consider putting down 10% and being on a worse rate.
Other than saving, are there any other options to fund a deposit? I could afford to repay a loan of that size at around 5% pa, but can't find a personal loan for that sort of rate.
If I got a mortgage for the full 100k from my current lender, the total LTV over both properties would be 85%, but as my other property is a rental they don't seem keen to consider it - is that the norm? Are there any banks which will look at the entire portfolio together, rather than as separate mortgages?
Would be grateful for anyone's comments or suggestions!
Thanks!
I have a rental property (160k) which I don't want to/can't afford to sell. LTV is 75% and bank won't allow me to extend borrowing as they won't go to more than 75% on a rental property.
I'm currently renting elsewhere (another town altogether) and have found a lovely place which is very affordable. New place would be approx £100k. Even on a 100% mortgage (which I know you can't get), the repayments would be about the same as my current rent, so I know I can afford it. I live alone, so council tax, utilities are still within my budget.
So, my problem is how to get the deposit together! I'd like to put down 20% to have more options re mortgages and also I know that the rates would be better than if I put down 10%. At a stretch, I'd definitely consider putting down 10% and being on a worse rate.
Other than saving, are there any other options to fund a deposit? I could afford to repay a loan of that size at around 5% pa, but can't find a personal loan for that sort of rate.
If I got a mortgage for the full 100k from my current lender, the total LTV over both properties would be 85%, but as my other property is a rental they don't seem keen to consider it - is that the norm? Are there any banks which will look at the entire portfolio together, rather than as separate mortgages?
Would be grateful for anyone's comments or suggestions!
Thanks!
0
Comments
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Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
Haha - if only!! If that were the case, I wouldn't be buying something for 100k I'll give you the tip!!0
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margins are too tight....not enuff equity.
my first house down payment i got a personal loan for 3k as part of the down payment.
but your margins are carp...0 -
You're not allowed to take a loan out for the deposit, that'd need to be declared as the funding for the deposit
R0 -
Why can't you afford to sell the rental?
LTV means you have plenty of cash in that for a deposit?0 -
Loans aren't accepted as deposits. There's the route of taking a loan out for one thing, and magically having the same amount of savings the next day, but then you're committing fraud, and still likely to be found out.
So, other than saving, winning the lottery or similar seems the best option.
Why can't you sell the rental place? Or why don't you want to?0 -
sell something ?0
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Kill off someone you're likely to inherit something from? Then don't get caught....0
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No, there is no magic way of getting a deposit.
It is perfectly normal for lenders to treat BTL's and personal mortgages differently, mainly because they are. They are not part of a portfolio as one is your home and the other is a business so your portfolio is 1.
You have 2 choices
a - sell BTL
b- don't buy and continue to rent.
Do you rent because you move around alot?0
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