first time buyer , AIP halifax

jkerr86

I've seen a property that I want to buy, I've been AIP from Halifax for £57000.

If i get the property for £50000 and put down 10%, would i be able to borrow £53000 in order for me to do the property up?

hcb42

not on a mortgage no.

you will be able to borrow up to say 90% of the purchase price, so £45K.

(As an aside where on earth do you buy property this cheap!)

jkerr86

it's needing a lot of work done.

Also, I have been approved in principal, what are the chances of this being declined when it goes to further stages? I am getting the deposit from my parents, should I bank this to make me look more favorable?

hcb42

the valuation will depend on what it is worth at current status. So if they think in current poor state it is worth £50K, then you can borrow £45K - although technically there could be retentions, but I think that over complicates it for now

You need to make sure that if you spend all this money, if it is because you want it to be home great, but if you are expecting to sell it fairly quickly i.e. in 2 yrs or so, then you might lose a bit of money here, which would not be unusual on a property of that value as certain things such as new kitchens and bathrooms will still cost money whether it is a studio flat in Chelsea or a treehouse in Hull.

You might be questioned on the deposit. If it is banked and it is from savings, personally I dont know how they would really know the difference, but I haver never been in that position, and a lot of people on here have quoted examples where they need letters from parents stating it is a gift, not a loan etc..so be prepared for that from lawyer.

you have already met affordability criteria, so as long as the house is of standard construction and therefore mortgageable, then you should be ok.

Where though....I just cannot fathom how it can be that cheap.

jkerr86

Thank you.

The house is valued in the home report at £65000, it's been on for a while and price dropped twice. My mortgage in principal has been approved to £57000 but I'd only go to £52000 and then walk away.

Planning on living in it, don't plan on selling it on any time soon if I get it. I have an outstanding loan and car payment that i told the lender about on the phone and I haven't defaulted on any payments so I am hoping it will be ok.

Thank you for your help

hcb42

sounds like a deal then, good luck