Mortgage with no deposit for less than house value?

mummybearx

My dad is wanting to sell his house to me. Currently we don't have anywhere near enough saved for a 10% deposit. This is my first time buying a house, already spoken to the bank who have given me a mortgage promise of up to £86,000.

For talking sake, say the house is valued at £80,000. Dad says he would want £60,000 for it. So, could I get a mortgage for £70,000, dad would give me the £7000 deposit, then when the mortgage goes through, he gets £70,000, giving him the £60k he wants plus his £7k deposit back and an extra £3k for me to do work to the house?

Is that even possible? Or am I just making up how mortgages work??

Any help welcome x

CKhalvashi

zepsgal wrote: »

My dad is wanting to sell his house to me. Currently we don't have anywhere near enough saved for a 10% deposit. This is my first time buying a house, already spoken to the bank who have given me a mortgage promise of up to £86,000.

For talking sake, say the house is valued at £80,000. Dad says he would want £60,000 for it. So, could I get a mortgage for £70,000, dad would give me the £7000 deposit, then when the mortgage goes through, he gets £70,000, giving him the £60k he wants plus his £7k deposit back and an extra £3k for me to do work to the house?

Is that even possible? Or am I just making up how mortgages work??

Any help welcome x

I know it's not the norm as far as lending goes, but it is possible.

We've used 'The Mortgage Cafe' for short-term secured borrowing, then mortgaged with a new valuation 6 months later.

It's not generally possible with 'mainstream' lenders, but it's not impossible either

CK

Wh05apk

This is basically just a family gifted deposit, most lenders will be ok, you could get a mortgage of £60k, with the £20k discount taken as the deposit (subject to valuation)