Mortgage Deposit Query

wazza121990

Hi there

We're in a bit of a funny situation at the moment and was hoping someone might be able to give some guidance. It's a bit of an essay but here goes.

The other year due to work my parents had to move to the other end of the country, the house went on the market for about a year but with no real success. As a measure to help my partner and I decided to rent their house from them so that they could afford to move. We agreed a deal that would see us rent it from them for a couple of years and in return they would help us out with a deposit when we were to get our own mortgage.

This was around 6 months ago, since then both our and their circumstances have taken a few U turns and we have all decided it is best for them to put the house back on the market and for us to buy our own place. They are still going to help with the deposit with a gift, but now want to increase the help by loaning us a substantial amount of money for as good as 0% interest to improve our mortgage rate. All good so far.

The only thing we are struggling with is timings. They will only be able to give us the money once the sale of their house is complete, however as we are currently living in their house we need to have found our new house and put down the deposit prior to this, which i cant work out how to make it work.

Any advice? Am i just missing something simple?

ACG

Nothing too unusual about the timings as it effectively means your just part of a chain - albeit in a rented property rather than one you own.

The thing that does flag my attention is your loaned deposit. Many lenders wont accept a loaned deposit - the only exception to this may be if your income means you can easily afford both (for eg: most lenders will do about 4x income presuming you have no major credit commitments. So if say you were looking to borrow 2-3x income and then this deposit on top, some lenders may be prepared to accept. I would start calling lenders or get a mortgage broker on this before you get too far down the line and realise you cant do what you thought you could).

wazza121990

Thanks for the info. I will look into the loan query, it is definitely affordable for us but i wouldn't want the lender to disagree with that.

ACG

Its what the lender sees as affordable, dont forget interest rates are at an all time low at the minute.