Unique situation - £80k cash but no mortgage - what to do?

Annisele

sanel wrote: »

Building_Surveyor wrote: »

Ok, My first mortgage ever was BTL. You can't do it by going to bank and asking for the R mortgage because you won't get it. But if you go to broker and explain situation, there should be no problem.

That was true a few years ago, but not any longer. If the OP finds a good mortgage broker, there's absolutely no way that broker would try to place this on a BTL basis. If the OP is intending from the outset to live in the house, then applying for a BTL would constitute mortgage fraud.

In the past, you could get away with that without committing mortgage fraud - because the lender didn't always ask where you'd be living, and so you didn't have to lie about it. If you do lie about it, then you'll be deceiving the lender with the intent of getting money you wouldn't otherwise.

sanel_2

OP goal is to get mortgage and buy the property. With £17k they can only dream about it. It's not gonna happen. Let's say they only use 50k of their 80k available cash, they can still get around 60% mortgage which doesn't represent any risk to the lender. ( and their rent would be less of what they pay now) So if they lie in order to achieve their goal and if that lie can not harm anybody, what's a big deal?
P.S. and there are lots of brokers who would suggest BTL

Kynthia

sanel wrote: »

OP goal is to get mortgage and buy the property. With £17k they can only dream about it. It's not gonna happen. Let's say they only use 50k of their 80k available cash, they can still get around 60% mortgage which doesn't represent any risk to the lender. ( and their rent would be less of what they pay now) So if they lie in order to achieve their goal and if that lie can not harm anybody, what's a big deal?
P.S. and there are lots of brokers who would suggest BTL

Mortgage fraud is a criminal offense. The OP wants a property to live in and obtaining this through deception is fraud and not as easy as it used to be. I really don't know how much clearer everyone can be in this matter.

Jenniefour

sanel wrote: »

OP goal is to get mortgage and buy the property. With £17k they can only dream about it. It's not gonna happen. Let's say they only use 50k of their 80k available cash, they can still get around 60% mortgage which doesn't represent any risk to the lender. ( and their rent would be less of what they pay now) So if they lie in order to achieve their goal and if that lie can not harm anybody, what's a big deal?
P.S. and there are lots of brokers who would suggest BTL

Sanel,

Please read the post by Annisele - captures useful points other posters have made, addresses the relevant issues and is knowledgeable and accurate. The advice you have given is neither. What went on in the past with mortgages cannot be used as an example of what's possible today. OP does not have 80k "available cash", she has an offer of a 80k loan from family in the USA. Loans cannot be used as deposits when a mortgage is needed, full stop. Which prison are your collection of mortgage brokers operating from?

sniperpenguin

Apologies if this touches a nerve....

With a 17K income, home ownership is a long way off although your ability to save up a deposit is admirable.

Options.
1. Don't home school, and obtain a second income.
2. Partner sources a better paid job,
3. Move to a cheaper area (you dont appear to be tied to an area by school obviously, and you dont risk a reduction in salary)

Personally, with the income you have I would question your ability to cope with the running costs of a house (insurance, repairs, upkeep, decor) alongside the mortgage and repayments to your USA family.

In your situation, I would be looking for a cheaper rental (perhaps a private rental without an agency - there are plenty about) whilst building up deposit (and career-building to increase your earnings). Renting is not the dead money people say it is.

sanel_2

Jenniefour wrote: »

Sanel,

Please read the post by Annisele - captures useful points other posters have made, addresses the relevant issues and is knowledgeable and accurate. The advice you have given is neither. What went on in the past with mortgages cannot be used as an example of what's possible today. OP does not have 80k "available cash", she has an offer of a 80k loan from family in the USA. Loans cannot be used as deposits when a mortgage is needed, full stop. Which prison are your collection of mortgage brokers operating from?

oh, I see. I've probably misread the title "80k cash but...." in that case, to capture the "legal" sentiment of this thread, therefore, to cut this short, the message to OP is, follow the rules and regulations and....keep on renting.

carslet

sanel wrote: »

oh, I see. I've probably misread the title "80k cash but...." in that case, to capture the "legal" sentiment of this thread, therefore, to cut this short, the message to OP is, follow the rules and regulations and....keep on renting.

I totally see your point, rules sometime have to be bended

If i was the OP i would tell the bank it was a gift and not a loan so as to get a mortgage no harm to anyone there really

But in this case I do not think a BTL would be possible on only 17k and their first mortgage.

and also if the gift really was a loan, how would they afford to pay it back.

I think the lifestyle they want is a very comfortable one and have a nice house with hardly any income, and i don't see how it is possible if they have to pay this 80k loan back too.

sniperpenguin

carslet wrote: »

I think the lifestyle they want is a very comfortable one and have a nice house with hardly any income, and i don't see how it is possible if they have to pay this 80k loan back too.

^^^ This pretty much sums up the situation, unfortunately.

Leah-Ray

Ok thanks everyone for your input. We're just going to continue renting and applying for new jobs for my husband