Enough income but small deposit

SusanMum

Hi, I was wondering if anyone could offer some advice please?

My partner and I are currently renting separately but would like to buy a property together. I have £5K cash, and he has £60K which is tied up in an unbreakable bond for the next 22 months. Our salaries are enough to enable us to borrow far more than we need (or could afford to repay!) but our problem is that he is 50 and so we would have to take a mortgage over 15 years (which will decrease to 13 years if we have to wait for the bond to end to release the £60K). We would probably want to buy at around £180K which is the price here for a 3 bedroomed house as I have 2 children. We have no debts.

Does anyone have any ideas about how we could raise a deposit or get around this problem? A friend advised that we take a loan for around £15-20K and repay this in 22 months when the bond ends, which would give us enough to put down with my £5K to make a deposit, but would a lender look unfavourably at that, even though we have the money but it's tied up?

Any help or advice would be gratefully received.

Thanks

_Andy_

No lender will accept a personal loan as a deposit
Nor will you probably find a loan provider that will lend for that purpose.

SusanMum

Thanks Andy.

So basically, the only way is to wait 22 months to get at the matured bond and do the mortgage over 13 years?

I suppose we wouldn't even qualify for the new Government schemes as we do have a deposit, we just can't get it.

_Andy_

Sorry I don't know about the schemes. But yep I can't think of a way of using it as a deposit without it actually 'in hand'. That said there are plenty of brokers on here who may see this who might have other suggestions. best of luck

witchy1066

why does the mortgage have to be only 13 years ? retirement age for 50 year old is now 67, and many lenders will go beyond "retirement age" if you can prove you can afford to pay

not that you would want to go beyond retirement , who would ?, but it would give you the time needed

also get some quotes from brokers , you might be surprised ,not a great deal of difference in mortgage costs between 13 years 9 months or whatever, and 15 years



HTH

_Andy_

"also get some quotes from brokers , you might be surprised ,not a great deal of difference in mortgage costs between 13 years 9 months or whatever, and 15 years "

this isn't the main problem, the source of the deposit is

witchy1066

I realise that Andy but the poster seemed worried that the mortgage would only run for 13 years if they waited until the deposit money was available,
she did mention it as being a problem in her post

SusanMum

Thanks to both of you.

I suppose the lack of accessible deposit and the diminishing available mortgage term are both problems. It would also be advantageous to buy sooner as we are spending a small fortune on renting, and I don't want to find that house prices have risen steeply in 2 years time.

I was looking at it needing to end at age 65 as that's when his work pension is written to.... I will need to look into our projected pension income to see how affordable this would be (although it would be a lower mortgage by then anyway as the £60K would have been repaid) and I am a few years younger and would still probably be working.