FTB - Please advise on best action!

Coppice

We've had an offer accepted for £170,000. In terms of financing this sum, I'm looking at 75% repayment mortgage over 25 years. The £42,500 deposit will comprise of:

£20,000 savings
£22,500 from relatives (gift or equity - this is the discussion)

I'm currently looking at:
Lloyds TSB lend a hand, 4.99% fix for 3.5 years
Lloyds 5 year fix at 4.09%
Halifax 5 year fix at 3.99% (will Lloyds rate match Halifax?)

With the better rates I could save over £3000 over 3.5 years by going the gift or equity route over the lend a hand.

So the real questions:

Will the above lenders be open to discussing equity share with the relatives contribution or will this need to be gifted?

Ideally we would them to benefit from helping us out.

Also, will equity share reduce the amount the lender is willing to loan?

Thank you in advance.

Tom

CLAPTON

by equity share, do you mean get a joint mortgage with the relative and have them named on the deeds or what?

Coppice

CLAPTON wrote: »

by equity share, do you mean get a joint mortgage with the relative and have them named on the deeds or what?

Hi Clapton,

Something along the lines of the family equity scheme offered by Britannia or an informal or contractual agreement whereby they would receive their share when the house is sold (profit or loss). They don't want to be involved with a joint mortgage.

kingstreet

Presumably, the Britannia scheme involves a charge over a relative's property?

If they require repayment at some point in the future if they provide cash, it won't be a gift and many lenders will shy away because of the legal implications of formal arrangements for you to repay.

There is no "rate matching" in the mortgage market. Products are costed and based on rate-swaps and are therefore take it or leave it.