What to do?

Gemsie

A house hs popped up in the exact location we would like to live, with every desirable box ticked at a price we would easily be able to afford. Something like this has never come onto the market as long as I have been dreaming on Rightmove (many years!). It's £140K, detached, huge garden, wood store, garage for all of our outdoor kit...and so on....

However, we have only saved about a third of the deposit The problem is, the OH's parents are due to inherit some money sometime in the early New Year and they have said they would loan us the rest of the deposit. We're very lucky in this respect and we know that, but are frustrated that an ideal house has popped up just a little too soon!

Do we just write it off, or is there anything that can be done? Could we get a mortgage in principle if we had the evidence of the incoming inheritance? One part of me is saying "Something else will be along soon", but on the other hand, it really is a perfect house for us. It is definitely within our reach in terms of easily paying a mortgage if we had the deposit (we both have very well paid secure jobs). I think perhaps the answer is just to step away from Rightmove! :rotfl:

thelem

What is there to do other than wait? You can't buy something if you don't have the money and no one will lend you the money.

On the positive side, it may well still be on the market in the early new year.

MarkBargain

Just be patient and keep saving for the deposit I'd say. You could get a mortgage with a 15% deposit which is £21K. In the meantime, hope the house doesn't sell. You might be lucky and they could drop it in price or accept a lower offer when you come to buy.

moneyistooshorttomention

Hope you manage to get this house. One consolation is that few houses seem to be selling right at this moment (ie because people have other priorities on their mind - ie Christmas).

I think realistically all you can do is see if there is any way the "inheritance" can be hurried up (eg have your parents check if an inefficient solicitor/executor isn't moving as fast as they could be to get this wound up).

I know how you feel - there are two houses I am tossing up between in the area I have chosen to move to. It is a much slower-moving area than my own and houses often stick around for months and I've got a "mental marker" on both those places thinking "Please please don't sell until I am ready" (in my case because I am halfway through getting this house ready for sale and awaiting a lump sum of money I will have soon and I can move at faster speed to get my house ready sooner - but there is nothing I can do to hurry up when I get this lump sum).

hazyjo

You probably won't get a mortgage with a borrowed deposit anyway (well, 2/3 of the deposit). How long will it take you to find the 2/3 you're missing without borrowing it?

What percentage deposit are you aiming for anyway?

Jx

drummer_666

put up a lower deposit than you first wanted and when you get the inheritence make overpayments?

kingstreet

A mortgage offer typically lasts six months.

You could make an offer for the property and agree a purchase price on the basis that completion will be some time off. If required to do so, the in-laws could provide a letter to say they are gifting part of the deposit on receipt of an inheritance.

You could not exchange contracts until the money arrives and if it doesn't you'll waste money and let down the vendor, but if you are up front with them from the start, they'll know the situation and can plan accordingly.

hazyjo

I took it that the in-laws were getting the money and would lend the OP 2/3 of the deposit (when the money came through).

OP, do you mean they'll lend it to you now until the money comes through, then you get a gift of the money?

Wouldn't tell the mortgage provider that it's gifted if it's not...

Jx

Gemsie

Thanks to everybody for their replies. Good to see others are in a similar situation and it's useful to see other perspectives!

I would like as big a deposit as possible: I was hoping for approx 15-20%. With normal saving, possibly a year...with super saving and the OH banned from making any purchases, then obviously quicker (what is it with boys and their toys?!).

With regards to being lent or gifted the deposit, does this make a difference? From my point of view, I would like the house to be entirely ours. We have friends whose parents gave them the deposit, but then feel it necessary to query, question and quibble every little thing that our friends do with the house. I know that my in laws are not like this, but would be far happier paying back the deposit so the same situation could never occur!

Yorkie1

When you apply for a mortgage, the lender asks you how much deposit you are putting up, and the source of the deposit.

If the money is gifted, then the person giving the gift has to sign a letter or similar to confirm that the gift comes with no ties or expectations of repayment in the future.

If the money is to be repaid to the person giving you it, then that must be declared because it impacts on the lender's assessment of your affordability.

Failure to declare the true position at the outset is mortgage fraud.

On the inheritance issue, how certain are you of the date when the inheritance is expected to be received? There can be many unexpected delays and you wouldn't want to start the buying process and then hit this hitch.

SG27

The house will probably still be on the market in January. Not much is selling in most areas at the moment and even less so now it's the run up to Christmas.