First Mortgage - would this work for a deposit?

drbraindead

I know I will need 10% deposit, but would this work.

Example, the house costs £50,000

I borrow a deposit from somewhere, £5,500

I ask the lender/bank for £55,000

Buy the house and pay back the loan/borrower

The deposit is obviously within the mortgage.


Can you ask for more than the house is for sale? or is that braindead

hcb42

no it wont work

you can only borrow a max (90% or 95%) of the actual valuation of the home, not 10% on top. That stopped with the credit crunch..

ACG

Your maximum borrowing is against the purchase price or the valuation - whichever is the lower.

drbraindead

hcb42 wrote: »

no it wont work

you can only borrow a max (90% or 95%) of the actual valuation of the home, not 10% on top. That stopped with the credit crunch..

Cheers,

I was a little confused then, I thought I could borrow 90% of the amount I wanted.

hcb42

drbraindead wrote: »

Cheers,

I was a little confused then, I thought I could borrow 90% of the amount I wanted.

think about that -

Yorkie1

You also can't borrow the deposit itself, just for the sake of clarity.