Bank Loan for mortgage deposit.

moohound

Some of the answers might sound a bit harsh, but they are honest, and will help the OP avoid disappointment and embarrassment when applying too early.

Reading between the lines the OP does not have a lot saved up because the idea of buying a house is new to them, and they have not yet tried to save up.

Whether they are capable or incapable of saving and then servicing the mortgage is yet to be seen.

jamesd

You could go for a long duration 0% for purchases credit card deal. Place all possible normal spending on the cards, one for each of you.

The accumulation of debt on the cards is money that you can then put into a savings account. The credit card repayment cost will reduce the amount you can borrow because the repayments will be deducted from your income but this will let you accumulate a deposit more quickly.

Don't do this as the only way to accumulate the deposit.

You're also being pretty ambitious for a first time purchase. A more traditional first buy would be a flat that is enough to eliminate your rent, allowing you to save more quickly for a second step into a house.

Apples2

alikenney87 wrote: »

We have found some houses around 180,000, with the governement funding 20% meaning we would need 5% as a deposit on the house.

Don't get blinkered by these Government schemes.

Ignore the Government piece, you are looking to buy a house for £180,000 which is a phenominal figure for a first time buyer.

There are schemes like this near me, flyers have all the houses at £230k plus but no more than 2 miles away identical houses are selling for £160k.
They are all New Builds with tiny rooms, no storage, no insulation between your neighbours, one parking space and a queue of First Time Buyers all desperate to sell up and move out but can't as they are locked into this sillly scheme.

You say you are desperate to get on the Property Ladder but you haven't actually saved a single penny to get on it.

opinions4u

I know it's a busy world out there, but I do find the concept of asking a question on a forum and then not bothering to log back in for over 40 hours to see if anybody's answered a bit rude.

Linda32

Funnily enough, way back in the day of 100% mortgages and a house purchases of £50,000 was way beyond our reach (the price of the house which we were renting at the time for the grand total of £375/month) this question was asked by us and the nice lady from TSB (at the time) was up for it.

However when she took the idea to her boss he actually walked out of the room. Refused to be a party to the conversation. I think he could see his pension and career disappearing

If we could have done it, the cost of a mortgage which at the time was £42,000 plus 5% loan was still less than £375/month so I know where the OP is coming from. Unfortunately it wasn't allowed then and I doubt it is allowed now.

We got a 100% endowment in the end, which was swopped to repayment 3 years later *phew*

To the OP I'm afraid a deposit is needed and has to be saved for. Maybe pop down to the Old Style forum they have ways of cutting back without going without that you won't have thought of ever.
Or Debt Free Wannabe board, you don't have to be in debt to post on there and they will show you different ways of cutting back as well.

Very best of luck.

pauletruth

no mention of income either. whats your earnings.