Can't help fretting about ability to get a mortgage!

JellyBox

Hi,

The rest of the details have gone, they don't seem to be needed as the hurdle appears to be where my deposit comes from and I feel uncomfortable having so much info up.

TIA

Jelly

Thrugelmir

Where's the deposit coming from?

JellyBox

Ah yes, missed that one. My parents have lent it to us for me to pay back slowly but surely. That's another of my worries, do the bank need to know where it's come from? Again, will they be able to look back and go "what's this - £20k has suddenly appeared - what's going on with that?!"

somethingcorporate

Yes, they will be suspicious. If you cannot afford to save for a deposit you cannot afford to buy a home and all the associated maintenance costs. Lenders want to see financial discipline.

They will also not accept a loan as a deposit (even from parents) as they will have an interest in your property (gift with reservations). They would only accept a gift with no strings attached but saying it is a gift when it is in fact a loan would be mortgage fraud and could leave you in a whole heap of trouble.

I'd suggest you try saving for a few years first before taking on such an undertaking. The multiples would probably be doable if you are a reasonable risk but the lack of ability to save and lack of real deposit is going to mean you'll have to wait a while.

JellyBox

Fair enough. That's my worst fear tbh. We can't save any more than we are currently, and need to move to somewhere with a little more space, which will mean saving much less as the rental cost per month is more than that for buying.

I don't know, I feel horrible about the whole thing. Dad's been going on at me to buy for the last couple of years, finally worked out a way it could work (for us, not him) and now maybe it won't after all. They are determined to lend us this money for this purpose, and to be frank, the only other way we could do this (and live our lives) without that loan, would be to move in with them rent free and have our extra travel costs covered by them.

Stuck. Rock. Hard place. Gutted .