how can i do this?

nicke20

Quick facts
House price (accepted offer) £370k
Due to last minute hiccup my mortgage offer of £127k is now not enough, I recon I need at least £145k.
Any ideas?
I earn £28k the rest was a cash deposit
I wanted an interest only mortgage, do I have other options?
Equity release ?
Part repayment?
Until midday this was in the bag now I'm £20k short of my dream home
Gutted doesn't come close lol

R_P_W

What kind of hiccup?

Repayment mortgage?

nicke20

the hiccup is m father being a **** from the grave
my mother died 8 years ago and left 3 kids her half of the house, (valued at £200k, our share) he went balistic that she had not left it to him, he even tried to sue the solicitor that had written the will. Anyway he wouldnt let it lie so in the end an agreement was reached that the house would go back to his name and his estate would pay out the £200k plus bank base interest when he popped it. he died last august, still resenting what had happened 8 years prior, he left nothing to his 3 children (me being one) and his house was put up for sale (£425k), eventualy an offer was accepted by the executors of £344k (from a member of staff of the estate agents), the executor being the solicitor. at this point i start house hunting having got a largeish savings pot too.juston the point of purchase i ask the solicitor if the interest will be calculated to the next quarter day, (this had been brought up before) and was now told that what my late father had actualy done was leave us half of the current value in the estate so thats about £60k less than we thought we had been left. and now im up the swanny!!

its an interest only mortgage

im currently thinking of funding the shortfall with a personal loan over 10 years

kingstreet

The most generous lenders offer 5x income, after any credit commitments and other costs such as childcare and dependents. So the maximum you could borrow is £140k if you have none of those.

Dave_the_Ginger_Cat

If you take it as a personal loan, it will be deducted from your income and your loan value will drop further - would not recommend this.

I would recommend looking at another property or seeing if the seller will negotiate any.

I know this does not help you today, but for other buyers considering a purchase based on inheritances, I would always recommend getting as much certainty on the value to avoid disappointment down the line

hamster2013

not sure how you get from £66k to £243k of hte downpayment you were putting... as you said you were one of 3 children, so your share would be 1/3 ?

but regardless of that, in your calculations, have to taken into account the eye watering 3% stamp duty, which in your case will be an additional £11.1k ?
what about the legal fee's of around 1-1.5k ?

if yes, and that is part of the £20k you are missing, then maybe some help from friends can get you to the 20k ?

loan is a bad move, as that will add further debt that will not even allow you to borrow the £127k you currently are getting.

if I were you, these are the 2 options I would pursue:
1. friends/family
2. wait to get your monies and then start looking - what currently seems like the dream house is a state of mind - if you restart looking, the next house that you like will also feel like a dream house. If you can get one where you don't have to take a mortgage, that would be ideal as a cash buyer you can negotiate better in cases that require quick sale. Maybe even look at auctioned property as then you have the upper hand with cash in your pocket.

shortchanged_2

Is the interest only reason for affordability?

Thrugelmir

shortchanged wrote: »

Is the interest only reason for affordability?

Dream houses are called that for a reason. Out of reach by normal means.