Deposit / solicitors fees shortfall

kingstreet

Sorry. I don't understand most of that.

You want a higher mortgage amount?

Ask your lender for an increase. Don't forget, if it takes you into another LTV band, you may have to change products.

If I've misunderstood, please clarify your intentions.

Thrugelmir

Nicolawb007 wrote: »

Ok done another of the how much can we borrow calculators and we can still borrow over hat we need if we declare a 10k credit card. Now we have the offer can this application be littered or would a new application be needed? If a new application would it cancel the existing offer? X

You appear to have been offered a mortgage at 90% LTV. So options are limited.

GMS

Think what OP is saying is that 10k of CC debt would be a pass within the lender affordability calculator so still fits criteria??

kingstreet

Right.

So, they have a 90% application offered and now want to redraw £10k on cards to pay the fees and hope the Nationwide don't find out.

She now thinks that as the affordability still stacks up, it should be okay?

Well, on that basis, tell Nationwide you are only paying off £7k, not £17k and see what they say about the mortgage amount you've requested. The case may be re-underwritten and the amount you are offered may fall. If you're right about the affordability, that shouldn't happen, but this would be better than doing it, risking a possible offer withdrawal in the event of a random audit uncovering the re-draw.

The risks have been pointed out, we can't say or do much more than that.

GMS

OP I would suggest simultaneous exchange and completion in order to minimise risk. You will of course need to disclose source of funds to your solicitor which they should report to the lender. Use your solicitor to guide you and be aware of the possible consequences of a withdrawn offer as has been stated.

themaxx

Isn't stamp duty due 30 days after completion? So you could complete, then borrow to pay stamp duty.

kingstreet

themaxx wrote: »

Isn't stamp duty due 30 days after completion? So you could complete, then borrow to pay stamp duty.

If you need a mortgage, the solicitor's instructions from the lender insist on all the funds being in the solicitor's hands in preparation for completion.

You only get the 30 day period if you are a cash buyer.

hamster2013

if you want to avoid trouble, maybe asking a friend to help in this case could be an option, who could take the loan for your contingent that you pay back the day after completion ?

its always a bad sign when you start a purchase in such circumstances by over endetting yourself.
I would pay the few hundred of fee's you are already liable for and pull out of the purchase and review a property that fits the bill (i.e with your £30k savings).... it will be a hard decision but will save you losing larger sums (just the interest on a 10k credit card will be more than what you would pay your solicitor + bank at this stage...)