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Help i need advice!!
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longhope81
Posts: 6 Forumite
Mortgages - Example= If i am buying a house for £140,000, but it is actually valued at £240,000 is there anywhere i can get a mortgage that would use the extra value of £100,000 as a deposit for the mortgage? Hope this makes sense!!! :mad:
I would appreciate any advice!!
I would appreciate any advice!!
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Who are you buying from?
If a close family member it is possible. If a non related vendor then no. Lenders will use the LOWER of the purchase price OR valuation generally.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 -
Hi! We are looking to buy our parents house0
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Then yes you could potentially use the equity as the deposit. Parents would need to gift the equity to you. Are they to continue residing in the property? Some lenders will not allow this so make sure that they will allow prior to any application.
A broker may be of use to you for this one.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 -
THankyou so much, i really appreciate your speedy advice. I will take a trip to a broker next week.0
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Can you elaborate on what you mean by gift it to us?0
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Your parents would need to sign a declaration stating that they have given you the equity as a deposit as a non refundable gift.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
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Will most mortgage lenders accept a 'gift' as deposit?0
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From a close family member they generally will do. From a non related vendor then no.
What you are looking to do is a 'purchase at undervalue'. Make sure the lender is ok with it. Exactly the same as a gifted deposit but equity being given rather than cash. Lender will base the lending on the valuation, not the lower purchase price.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 -
Thankyou, will go and see someone next week. You have helped us greatly.
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No problemI 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
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