Do you need a deposit for a Mortgage?

Littlebutterfly_2

Do you need a deposit for a mortgage? Is the Pope catholic?:rotfl:

USM

Nix1982 wrote: »

How are people meant to get on the ladder these days?

By saving hard! It took us bleeding ages to save the £75k we needed for our deposit by not having holidays, not having an enormous social life, etc.

£4k seems like an absolute snip!

TrickyDicky

If you've already got credit cards that need paying off, and a low income (It sounds like you have, given you said it would take ages to save a few grand) then you are unlikely to get any mortgage.

shortchanged_2

beecher2 wrote: »

You can't borrow a deposit and he won't get an interest only mortgage without a repayment vehicle.

You used to be able to do this and I know some people that have done this.

(I am by no way condoning this by the way)

surreybased

Hi,

Just to claify - someone wants to sell their house to you for £40k when the market value is £80k? If this isn't a relative then I suggest you look into this, who has valued it? If the bank lend you mortgage on a property they want to see that you have invested something - not just 100% of their money.
To purhcase the house you will need solictors fees, survey fees etc so just make sure you have a budget for that. I would encourage you to get a full survey on the building as if it's a 'too good to be true' deal it might not be! What if there are issues with the house and the vendor just wants to off load it.Ideally you should be looking to have about £8k available to fund the house.

spadoosh

Nix1982 wrote: »

Christ, will take me ages to get that much

wow, you got that quick! at this rate you will have the 4k by tea time. Honestly though you only need about 2-3k more and thats a 10% deposit and most of the fees.

your situ:

house price = 40000
10% deposit = 4000
Mortgage 36k @ say 5.5% over 25 years = £225 per month
Current deposit = £3000

Do you not knwo some who will lend you 2-3k untill you buy the house and then you could get a bank loan secured on the house to pay it off (should be fairly easy to get the loan IF the house is worth 80k)

As stated this is fraudulent unless you could get someone to give you the 2-3k?!?!?!

Other than that just save!

ILW

If the vendor is so generous, why not just get them to sell at true value and give you £40,000 cash which you can use as a deposit.

GMS

ILW wrote: »

If the vendor is so generous, why not just get them to sell at true value and give you £40,000 cash which you can use as a deposit.

This would be a 50% vendor deposit which no lender would allow unless close relative.

Also where is the vendor likely to get 40k cash from? Mortgage would not be able to complete without the solicitor having a deposit even if the lender allowed it.

ILW

GMS wrote: »

This would be a 50% vendor deposit which no lender would allow unless close relative.

Also where is the vendor likely to get 40k cash from? Mortgage would not be able to complete without the solicitor having a deposit even if the lender allowed it.

You missed my point.

If the vendor where to sell on the open market for £80,000, they could then give the OP the £40,000 (which they seem perfectly happy to give away) to use as a deposit on another house. 50% LTV and £40k deposit straight away.

GMS

A lender would still want to know the source of the deposit and would be unlikely to lend with a 50% deposit from a friend.