Should my Wife take out a loan to boost our deposit?

splutterbug

It seems impossible to get any kind of Mortgage with less than a 10% deposit and living and working near London doesn't help. Currently I have £16,000 saved but most properties are starting around £190,000 (Have to have two bedrooms as we have 2 kids). My rent is going up yet again next year so saving any more is going to be a long slow process.

In the short term it would be expensive but a £180,000 Mortgage would be a good £300 a month cheaper than what I'm currently paying in rent. I'm just sick of being shafted by landlords and its so frustrating as I know I can pay back a big mortgage as I'm paying more than that in rent right now. :mad:

Any advice of how to get on the property ladder in my current situation would be really appreciated, I feel so close in terms of deposit just not close enough especially when you take fees into account. (btw before anyone mentions it money from parents is not an option).

_Andy_

Don't see how you're being 'shafted' by landlords - are you suggesting they shouldn't make a profit?

Doubt you'll find any loan provider willing to lend for that purpose, let alone a mortgage company who will accept a personal loan as a deposit anyway.

somethingcorporate

Keep saving, not far to go now.

Post up an SOA on the DFW forum and see if there any cutbacks you can make to assist in your savings.

dave333

Loan rates seem to be pretty low at the moment and as long as you are good with your money and have good credit a loan may be a useful option.

It will affect the amount you can borrow through a mortgage as most providers will take the loan repayment into account but if the repayments (mortgage plus loan) on buying a house are cheaper than renting then it would seem to make sense...

Make sure you have a solid budget for moving house (legal fees, moving fees, mortgage fees etc...) and also a solid monthly budget for when you move in

Good luck!

splutterbug

Thanks for the advice, and as for Shafted I consider a 10% rent increase as well as year on year rent increases for the last 3 years to be pretty shafted especially when it took over a year to get working heating.