Getting a loan for a deposit?

mikeysmummy

Hi our situation is we live in surrey and work London.
Between us we can get a 285k mortgage apparently.
We pay 1000 a month rent and have 5k in debts and an overdraft.

We are looking to relocate to Milton Keynes and have seen the new build government scheme. There is a 4 bed new build in the area we wish to move and its 214k meaning we need roughly 10k deposit which we haven't got. But it would mean overall including a loan which would consildate all our debts which amount to about 400 a month outgoings, we would be paying in total 1027 a month which would save us 370 a month if we did it this way?

My first question is, would this be possible and second would we get a loan and a mortgage bearing in mine we won't be taking out the full mortgage that we could get if that makes sense?

Ie if I get the loan and my husband gets the mortgage for instance?

Help

moohound

Mortgage providers will not usually give you the money if you have not saved the deposit, to say you have saved when you have not is mortgage fraud, and is very serious. You have to truthfully say where the money is from, even if it is a gift from relatives.

To do your plan you would have debts greater than the value of your property.

Loan for deposit+ mortgage = 100% mortgage. These were withdrawn from the market for a reason, hence the recession we are all in.

Can you get a cheaper rental while you pay off your debts and save your deposit?

You need to budget/get best deals on all essentials and cut non essential spending out entirely, ebay stuff, shop at Aldi whatever,then :-

1) Stash £500 emergency fund - do this first, if you don't, the other things get slowed down, and keep it separate, make sure you can both access it.

2) Clear debts highest interest first, see snowball calculator for how this works, 5k should not take long to clear.

3) Save deposit, chuck everything at it, even have a penny jar, ask for cash for Christmas and birthdays.

4) By this time you will have learned to budget properly and live within your means, and you won't find yourself with mortgage, and debts and an overdraft.

R_P_W

So you already have 5k debt and an overdraft. You have no deposit? No savings? You want to borrow more money for a deposit to the borrow more money for a mortgage?

Sorry but count yourself lucky this wont be possible

opinions4u

Sounds like a recipe for disaster.

Have you thought of saving?

Thrugelmir

mikeysmummy wrote: »

and have 5k in debts and an overdraft.

We are looking to relocate to Milton Keynes and have seen the new build government scheme. There is a 4 bed new build in the area we wish to move and its 214k meaning we need roughly 10k deposit which we haven't got.

Time to start budgeting. Choose what your priorities in life are. Personally I would severely cut back for 6 months by making sacrifices and clearing the debt. This will then give a solid platform to commence saving. Which on your household income shouldn't be an issue.

mrginge

So you must have joint income of at least 60k?
And you cant save anything?
I'd love to know where it's all going.

John424

Are you undergoing a change of lifestyle i.e. swapping the London party scene for 2.2 children etc? You seem to be going through a lot of dosh each month at the moment.

maninthestreet

Borrowing even more money to try to get yourself out of debt isn't a good idea.

Annisele

Depending on where you are in Surrey, and on how you get to work, moving to Milton Keynes might not save you any money. A season ticket from Milton Keynes to Euston is about £4.5k per year.

But at things stand, you can't get a mortgage at all. Whether a lender will lend you money depends on lots of things - only one of which is income. I suspect the calculator you used to get the figure of £285k was based on your income alone.

When it comes to actually deciding whether to lend to you, lenders will also take into account your deposit (if you haven't got one, no mortgage), your credit worthiness, and a mountain of other things.

Having the deposit in one name and the mortgage in the other won't work. The person borrowing the money would be asked where the money came from - and if the answer is "my wife", the lender would want the wife to be named on the mortgage. Which brings you back to the "borrowed deposit" problem.

maggie1983

Hi

What about the situation:
a couple + child
35k per year
2k saved
want to buy a property 75k
no debts etc
what if we would borrow extra 7k for the remaining deposit?
it is not a lot, but deposit would be from a loan?
do we have any chances?

I have heard that banks (Lloyds & Nationwide started offering mortgages 5% save to buy) then we would not need to borrow that much?

Every month we loose by paying rent

would appreciate your views.

Dan-Dan

Annisele wrote: »

A season ticket from Milton Keynes to Euston is about £4.5k per year.

Really !?

I used to do this route and back in the late 90`s it was abotu £2800 !