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Help! Deposit issues...
vivek_3
Posts: 12 Forumite
Currently own and looking to buy a new build. I have to move quickly when the plot becomes available as there's some interest in it but I have to put down a 10% deposit within 28 days and my deposit is tied up in the current property. Can I get a temp bank loan until mine is sold and dosh is released? Got valuers coming this week but it's going to be another couple of weeks, at least, till it gets on the market. Help! 
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Comments
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It'd be insane to get a loan for the 10% deposit, especially as you haven't even had your house valued! Don't believe the hype - chances are the property will still be there once you've sold. There are far too many things that could go wrong to even think of this.0
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Not for us to decide whether you should or shouldnt but have a look at Bridging loans.
This is probably what your after.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Not for us to decide whether you should or shouldnt but have a look at Bridging loans.
This is probably what your after.
I agree it is not up to anyone here what the OP does, but taking out a bridging loan for a new build would be very foolhardy. What happens if the OP can't sell their house, or have to sell for less than expected? Or if the OP cant' get a mortgage, or the new build is valued at less than the OP has calculated.
OP - go and speak to your solicitor who will hopefully talk you through the situation.0 -
So the bottom line is get my place sold before attempting to look for another place? So how do chains work? Does everyone have deposits sat in their bank? Thought it was confusing first time round!
Will talk to a legal before going ahead with anything.
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yep, you will need a bridging loan or a firm sale....dont risk it, there will be other houses.0
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All bridging loans I am aware of currently require security against property to a maximum of 75% (or possibly 80%) - if you move into unsecured arena the prices will be much higher.
Taking loans on a non-refundable deposit when the ability to complete is dependent on a sale is high risk - the decision on whether the risk is worthwhile must sit with the individual taking it.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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