High deposit mortgage

twilliger

Hi - I'm lost in the logic(?) of mortgages and I wonder if there's anything out there that suits me?
I'm looking to move to a bigger house and, with luck, I could achieve 150k equity after fees if I achieve the right price for the place I'm in.
However, as I can't afford much more than the mortgage I'm already on, I can't actually buy anything for any more than mine is sold for.
I'm sure this is a dilemma faced by many - daily - but I would have thought that there's a solution rather than just "borrow more".
My question is: does anyone know of a lender that offers a cracking rate for a mortgage based on a high deposit? Higher than the conventional 5-10% in any case; in this case around 35%.
I'd be grateful for any advice - thanks in advance.
Twilliger

nrsql

Maybe someone will come up wit an option but I don't see why they should.
The reason for the increased rate on small deposits is the increased risk. They want to have a good chance of recovering the money via a quick sale e.g. reducing the price by 10%.

They also need to be able to finance the money they are lending you so I would be surprised if they would go any lower with an advertised rate.
Anyway it sounds like your risk would be decided by the repayments rather than the equity.

Are you paying into a cash isa? The return should be better than the mortgage rate so you would be able to afford a higher mortgage by putting money into an isa.

homer_j_3

twilliger wrote: »

Hi - I'm lost in the logic(?) of mortgages and I wonder if there's anything out there that suits me?
I'm looking to move to a bigger house and, with luck, I could achieve 150k equity after fees if I achieve the right price for the place I'm in.
However, as I can't afford much more than the mortgage I'm already on, I can't actually buy anything for any more than mine is sold for.

So in simple terms, your mortgage debt is at a level where you cannot afford to pay much more. You are not saying that you cannot borrow more because what you can borrow and what you can afford to repay are 2
different amounts usually.

I'm sure this is a dilemma faced by many - daily - but I would have thought that there's a solution rather than just "borrow more".

This is why you should never think that your equity is money in the bank because you cannot access it - you have to buy at todays prices so unless you are downsizing - equity will help but maybe not in the way that many think.

My question is: does anyone know of a lender that offers a cracking rate for a mortgage based on a high deposit? Higher than the conventional 5-10% in any case; in this case around 35%.
I'd be grateful for any advice - thanks in advance.
Twilliger

The only difference deposit normally has in standard residential mortgages is that you can sometimes get fast track underwriting. There are some lenders that may offer preferential rates to sub 75% loan to value but not by mega amounts.

Your best foot forward is to go and see a mortgage adviser who can cost everything for you.