Short on house deposit...

Dan_J

OK so me and my partner have 33k for a deposit but we've been stupid and find ourselves 4k short on what we need to cover deposit + extra fees to purchase a property. We're close to completion and panicking a bit. We thought the money was gonna come from family but it messed up...

We're looking at getting a loan for the last amount but we're worried about doing applications that get turned down because of the mark it will leave. We can afford the £100-120 a month it would cost to borrow 5k over 5 years...

any advice would be appreciated x

chanz4

also you need to watch the mortgage as they normaly credit check again prior to release of funds

Emmzi

why borrow 5k if you need 4k

What can you sell? Car, gold?

jc808

Credit card it

If you can park removal and solicitors fees until after completion, all the better

KingElvis

LOL so you need 4k but are looking for 5k? and borrowing between exchange and completion is an 100% absolute no no, don't even consider it.

The world just gets more and more barking every day.

Dan_J

Thanks everyone for the replies.

4k/5k does not really matter - the rates are better on 5k so we'll use the other grand to buy some stuff for the house... like I said we can afford those repayments along with the mortgage it's cash NOW that is the problem...

So if we get a loan the mortgage lender (Santander) will not release the funds as they do a credit check before hand??

Credit cards are an option but I don't quite understand how to get 4k CASH out of a credit card?

ps. I know this is a bit 'barking', I had not planned this this way lol

KingElvis

When you agree a mortgage, the bank checks a thing called affordability, they assess this on your income and outgoings at that time.

If you then go and sign up a load of credit, loans and other junk obviously the situation has changed and the bank can pull the offer, this has happened to some people between exchange and completion. Imagine, you could get an agreement and then go out and buy a couple of luxury cars and a holiday.

It's a golden rule that you apply for no credit at this time, and if you're going through a broker, I'm suprised he didn't mention it. You must also add to this the fact that banks do not take loans as deposits, another golden no no.

I would pop down to the mortgage board, they have some great people on there.

CH27

Dan_J wrote: »

OK so me and my partner have 33k for a deposit but we've been stupid and find ourselves 4k short on what we need to cover deposit + extra fees to purchase a property. We're close to completion and panicking a bit. We thought the money was gonna come from family but it messed up...

We're looking at getting a loan for the last amount but we're worried about doing applications that get turned down because of the mark it will leave. We can afford the £100-120 a month it would cost to borrow 5k over 5 years...

any advice would be appreciated x

Banks don't accept loans as deposits.

_Andy_

As stated above no mortgage lender accepts loans as a deposit. You would have stated on the application form the source of the funds which is now not true. Also your solicitor will be asking the same question.
You need to contact the mortgage lender to explain the situation.

poppasmurf_bewdley

Dan_J wrote: »

Thanks everyone for the replies.

4k/5k does not really matter - the rates are better on 5k so we'll use the other grand to buy some stuff for the house... like I said we can afford those repayments along with the mortgage it's cash NOW that is the problem...

So if we get a loan the mortgage lender (Santander) will not release the funds as they do a credit check before hand??

Credit cards are an option but I don't quite understand how to get 4k CASH out of a credit card?

ps. I know this is a bit 'barking', I had not planned this this way lol

I'm sorry to say that those two things I've highlighted don't quite add up. Reading between the lines, I think you are over-committing yourself with the mortgage for a new house. Nobody should be buying a house if they can't afford it - which is what you are admitting doing.

Mallotum_X

Sell your car - or whatever else you have.

Renogotiate house price.

Beg family for a loan for the fees - not a loan for the deposit