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Do you need a deposit for a Mortgage?

24

Comments

  • Nix1982
    Nix1982 Posts: 64 Forumite
    HappyMJ wrote: »
    You can borrow it on a credit card. £40,000 isn't much to pay back. £6,000 on a credit card will cost you about £1,200 per year in interest only £100 per month. The interest on a £34,000 mortgage will cost you £130 per month. Pay the mortgage slowly (interest only) and the credit card as fast as possible. You'll need to do a SOA to see whether it's worth doing or not. You seem convinced the property is worth double so is it or isn't it?

    Ive had it valued.

    Ive already got CCs that need paying off
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    HappyMJ wrote: »
    You can borrow it on a credit card. £40,000 isn't much to pay back. £6,000 on a credit card will cost you about £1,200 per year in interest only £100 per month. The interest on a £34,000 mortgage will cost you £130 per month. Pay the mortgage slowly (interest only) and the credit card as fast as possible. You'll need to do a SOA to see whether it's worth doing or not. You seem convinced the property is worth double so is it or isn't it?

    You can't borrow a deposit and he won't get an interest only mortgage without a repayment vehicle.
  • Nix1982
    Nix1982 Posts: 64 Forumite
    How are people meant to get on the ladder these days?
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Saving or by doing what I've suggested and say the money has been saved when in reality it's been gifted or borrowed.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    Nix1982 wrote: »
    How are people meant to get on the ladder these days?

    By saving up a deposit. Many would be jealous of you only having to save up £4k plus fees - where I live that amount wouldn't have been enough for a 10% deposit on a 1 bed flat so it isn't a huge amount.
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    HappyMJ wrote: »
    Saving or by doing what I've suggested and say the money has been saved when in reality it's been gifted or borrowed.

    which would be mortgage fraud and very unwise indeed.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    beecher2 wrote: »
    You can't borrow a deposit and he won't get an interest only mortgage without a repayment vehicle.
    You are right. I'm suggesting he says he has it saved then use the credit card to pay the deposit. But as he has credit card debt it probably won't work. Interest only mortgages are still available with a big deposit.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • beecher2
    beecher2 Posts: 3,677 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    HappyMJ wrote: »
    You are right. I'm suggesting he says he has it saved then use the credit card to pay the deposit. But as he has credit card debt it probably won't work. Interest only mortgages are still available with a big deposit.

    Yeah, you're suggesting mortgage fraud, and the OP doesn't have a big deposit so won't get an interest only mortgage without a repayment vehicle. I don't think your comments are very helpful to the OP to be honest.
  • Nix1982
    Nix1982 Posts: 64 Forumite
    Ive got about 3k stored away, and a few in Investments so hopefully I will have the deposit needed, which are the best mortgages to go for at the minute?
  • LilacPixie
    LilacPixie Posts: 8,052 Forumite
    go see a whole of market mortgage broker to go over your own set of circumstances
    MF aim 10th December 2020 :j:eek:
    MFW 2012 no86 OP 0/2000 :D
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