House-160K, Deposit-10k, Salary=~70K - possible?

begemoth

Hi,

I would like to buy a house now. Unfortunately I don't have a big deposit (~10K so far), my salary is ~70K and I am looking to buy a house under 160K. Is it possible? Will I be able to secure a mortgage?

regards,
begemoth

LillythePink

You're looking at least a 10% deposit and money for fees

So really you are going to need at least 22k ish plus if you need furniture etc it will be more.

Going on your salary, it shouldn't take you too long to save the rest unless you have other debt that you are paying off or a very high lifestyle that you will need to cut back on.

Ste.._2

£6,000 in fees??

begemoth

I already have a furniture (or at least most of it).
I know that I can save, unfortunately I am being forced to try to buy a house (due to multiple reasons). What if I take an unsecured loan for ~10k to use as a deposit?
I checked current rates on loans (~7.5%) and mortgages (~7%) and it seems I will be able to repay them without difficulties.

beecher2

You can't use a loan for a deposit. You aren't in a position to buy I'm afraid so can't really be forced into buying somewhere.

maninthestreet

How are you being 'forced' to buy a house??

spence

Save like mad from today, you won't buy a house by Friday week, so feasibly you will have several extra thousand within a couple of months.

With your low wage to mortgage values you'll easily be able to afford the extra % you'll pay becase of loan to value. Look for overpayment flexibility in your mortgage provider.

Some 95% mortgages are becoming available.

Good luck!

Insomnia- don't ya just love it:j

udydudy

beecher2 wrote: »

You can't use a loan for a deposit. You aren't in a position to buy I'm afraid so can't really be forced into buying somewhere.

IMHO there is no law against taking a loan for a deposit. but one should bear in mind that it would directly affect the mortgage size that would be allowed based on affodability criteria.

beecher2

udydudy wrote: »

IMHO there is no law against taking a loan for a deposit. but one should bear in mind that it would directly affect the mortgage size that would be allowed based on affodability criteria.

No, lenders don't allow deposits to be made up of loans.

opinions4u

udydudy wrote: »

IMHO there is no law against taking a loan for a deposit. but one should bear in mind that it would directly affect the mortgage size that would be allowed based on affodability criteria.

While there may be no law against using a personal loan as a deposit, I'm not aware of any lender that would agree to it.

When the application form asks a question around source of deposit, failure to disclose the truth is nothing short of fraud.

And there are a range of laws against fraudulent activity.

horngkai

Might be asking an obvious question....

How will lender know that the deposit is made up of unsecured loans?