first time buyer cashback mortgage

laurarobby

first time buyer cashback mortgage is there any available? we can get the house but it needs alot of work, rewireing, full central heating system, replastering then the rest! we just dont have the money to do the work are they any cash back mortgages if the seller agrees?

im new to this have no idea how this works! be kind

Thrugelmir

No such mortgage.

You will only be able to buy a property you can afford.

laurarobby

yes there is. my brother in law had one. and we can afford the house did u not read the post!
he bought a house for 100k and got 10k cash back so only paid 90k but had the mortgage for 100k. that was a few of yrs go now and in another part of the country to us!

there is no need to be so rude

Thrugelmir

laurarobby wrote: »

yes there is. my brother in law had one. and we can afford the house did u not read the post!
he bought a house for 100k and got 10k cash back so only paid 90k but had the mortgage for 100k. that was a few of yrs go now and in another part of the country to us!

there is no need to be so rude

If that's your attitude I won't bother commenting further. Anyway you seen to have all the answers you need already.

DannyboyMidlands

So you want to get a mortgage for more than the house is worth? No chance I'm afraid.

With the example above of a house worth £90k, you'd be lucky to borrow £80k.

kingstreet

laurarobby wrote: »

first time buyer cashback mortgage is there any available? we can get the house but it needs alot of work, rewireing, full central heating system, replastering then the rest! we just dont have the money to do the work are they any cash back mortgages if the seller agrees?

im new to this have no idea how this works! be kind

The problem you're likely to find is the surveyor will recommend a rather large retention until the remedial works have been carried out.

This means you'd need the money to bridge the difference to be able to buy the property then you'd need the money to pay for the repairs until the retention is lifted.

FTBs who have limited resources pretty much always find it difficult to purchase a property which needs more than decorative improvement.

laurarobby

i can borrow £100k with 10% deposit. do a 90% mortgage. i thought that was a good deal?

the cash back is from the seller not the mortgage company? is it still a no go?

kingstreet

laurarobby wrote: »

i can borrow £100k with 10% deposit. do a 90% mortgage. i thought that was a good deal?

the cash back is from the seller not the mortgage company? is it still a no go?

Effectively, this is like a vendor gifted deposit case. The last lender to accept this, Halifax, stopped accepting such cases at the end of July.

As this is an after event cashback, it's not clear what stance a lender would take. You need approval from the lender and the solicitor acting for them/you prior to making any commitment to purchase.

If the lender decides on a £10k retention, this money will be held back until the work is done. That means you need £10k deposit, plus another £10k to bridge the retention, otherwise you wouldn't have enough money to complete.

DannyboyMidlands

laurarobby wrote: »

i can borrow £100k with 10% deposit. do a 90% mortgage. i thought that was a good deal?

the cash back is from the seller not the mortgage company? is it still a no go?

I doubt that the mortgage company would agree.

If you buy for £100k but then the seller gives you £10k back it means that you are only paying £90k. So your £90k mortgage is now 100% of the purchase price not 90%.

Taking your idea a step further. What if I buy a house for £250k but the vendor gives me £125k cashback? Do I qualify for a dirt cheap 50% mortgage?

laurarobby

kingstreet wrote: »

Effectively, this is like a vendor gifted deposit case. The last lender to accept this, Halifax, stopped accepting such cases at the end of July.

As this is an after event cashback, it's not clear what stance a lender would take. You need approval from the lender and the solicitor acting for them/you prior to making any commitment to purchase.

If the lender decides on a £10k retention, this money will be held back until the work is done. That means you need £10k deposit, plus another £10k to bridge the retention, otherwise you wouldn't have enough money to complete.

ok thank you for your help. i think my BIL was with halifax so that'll be why he got it!

if we wanted to buy the house normally with with our 10k deposit would we be able too? i know it means we wont be able to do the work on the house as quickly as we would like though

kingstreet

laurarobby wrote: »

if we wanted to buy the house normally with with our 10k deposit would we be able too? i know it means we wont be able to do the work on the house as quickly as we would like though

Depends on the valuation report the surveyor prepares for the lender. TBH I felt the condition of the property was likely to be a bigger issue than the cashback query you first posted in the thread.

Like I said, if the valuer says £10k retention, that's £20k you need to be able to complete.