FTB: How much can i really borrow?

Rypetch

Hi,


I’m a first time buyer so please go easy on me.

I’ve recently just bought a new build apartment, costing just under £100k, which won’t be ready until next year. Barratt have agreed to pay 3% and I’m putting in another 5%. I’m borrowing some money from my in-laws to buy furniture and things I need for the apartment, totalling around 3k

My question is, even though I’ve already put down £8000 (£3000 from Barratt + £5000 from myself) leaving me with a mortgage of £92k could I still borrow say £95k? to pay the in-laws back?

When my solicitors asks the mortgage company for the money (£95k) and they hold it until Barratt asks for there money (£92k) what happens to the other £3000k does that go into my bank account? Or does my solicitor give it back to the mortgage company?

I’m a little confused, can anyone help?

Thanks

JoeK_3

Assuming that your income is sufficient to borrow £95,000, you apply to the lender for a £95,000 mortgage thereby holding some of your money back (Deposit).

You can then use this money to pay back your in-laws.

JoeK

herbiesjp

If you keep back the moeny from your deposit, you do not have to borrow the moeny from the in-laws in the first place

Barret £3k + YOur £2k = £5k

Use £3k for furniture etc

HTH

Rypetch

The thing is tho.... Barratt require at least 5% before exchange of contracts, thats not including there 3%. They said the 3% comes off at the end.

So bascially, I've paid 5% now, so i need to get a mortgage for £95k. Then Barratt knock off the 3% when they 'bill' my solicitor.

So what happens to the £3k?