How feasible is this?

owzzz

Hi,

I'm looking to buy a house shortly but my plan to finance the house purchase has a few issues which I need to look into.

Currently I have no debt and a good credit rating but no deposit... I earn £24000 a year and the house price is £90,000 with it's valuation at £120,000

I'm looking to get a base rate tracker mortgage with a 2.5%-3.0% interest rate. The LTV on the mortgage is 80%

The plan is to get a 0% Credit card to source a deposit of £10,000 or the lowest deposit amount possible to qualify for the above product.

so that would leave an outstanding mortgage of £80,000 which makes the monthly repayments to be approx £350 a month

My questions on the above are:

• How feasible is it get a 0% credit card for £10,000 or two seperate CC's with £5000 limits?
• Do mortgage lenders/or estate agents accept deposits in this form?
• How would motgage companies value the property mentioned above? would they take the £120,000 value as the LTV or would they adjust it to the amount I would pay for the house (£90,000)
• What would be the lowest deposit amount they would accept to qualify for the 2.5%-3.0% base rate tracker mortgage based on both LTV amounts?
• Are there any other possible implications to this sort of financing?

Any help on this would be great.

Thanks

Running_On_Empty

It's a non starter. The mortgage lender will require you to declare the amounts you owe on the credit cards and will not lend you the amount you need to buy at present.
Save up and when you have a deposit, start looking for a property.

50quidonRED

Its a robbing Peter to pay Paul, when really you dont have the cash to say the deposit it seems

immoral_angeluk

My boyfriend recently bought his own flat. First thing his mortgage advisor told him was that unless he had a cash deposit it was pointless even trying as the mortgage companies wouldn't believe he could afford the flat if he had to borrow the money for the deposit instead of saving up.

jazza77

LTV would be based on the lower of the valuation or price paid.

Any

Apart from all the issues already mentioned...

You don't have any debt now - did you have any in past?

Many people believe they have good credit rating because they have non-existent credit HISTORY. And in fact opposite is the truth. Because they never had any credit, lenders will not be able to judge how good are they with managing debt and therefore won't lend them any money.

If this is your case then it's time to start looking into getting at least c/card from your bank or subprime one to create some credit history as even mortgage lenders will be more willing to lend you if you have some history.