We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Yet Another Mortgage Question...
Rylo82
Posts: 4 Newbie
Hey guys and girls,
Basically I need to know where I stand with the attempted purchase of a house. A family member is allowing me and my wife to purchase a property at a reduced rate. We've been saving for a while and almost have the required deposit, BUT... We wondered, can we use the difference between the purchase price and the actual value as a deposit?
For example, if you purchased a house for £200K but it was worth £250K, could you say you've put down a £50K deposit? That way, we'd be able to use the money we've saved so far to improve the property without borrowing more cash.
If this is possible, would we just need the permission of the person selling the property to confirm that they are happy for this to happen?
Please excuse my ignorance, just trying to see what our options are.
Many thanks.
Basically I need to know where I stand with the attempted purchase of a house. A family member is allowing me and my wife to purchase a property at a reduced rate. We've been saving for a while and almost have the required deposit, BUT... We wondered, can we use the difference between the purchase price and the actual value as a deposit?
For example, if you purchased a house for £200K but it was worth £250K, could you say you've put down a £50K deposit? That way, we'd be able to use the money we've saved so far to improve the property without borrowing more cash.
If this is possible, would we just need the permission of the person selling the property to confirm that they are happy for this to happen?
Please excuse my ignorance, just trying to see what our options are.
Many thanks.
0
Comments
-
Yes this should be possible, but not with all lenders, so you would be best sourcing through a broker.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
-
Define 'family member' and all shall be revealed
Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Ha ha, thanks. The 'family member' is my wife's grandmother. She was left the property by a close friend, and we're currently living there (paying a very reasonable rental rate!), which has helped us save the money to buy.
The thing is, my wife really wants a nice new kitchen and this could be our only hope!:D0 -
There are a number of lenders who will accept that relationship - and the discount as deposit.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
-
That's brilliant news, thank you!0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.8K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 246.9K Work, Benefits & Business
- 603.4K Mortgages, Homes & Bills
- 178.2K Life & Family
- 260.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards