Mortgage Deposit - can it come from a loan in my partner's name?

exoteric

moldypeach wrote: »

We are first time buyers so really all of this is completely unknown. It would be ideal if we could go to a proper broker but we can't afford more fees!

I used a fee-free broker (paid via commission from lender) and she explained everything very well and there was a good choice of products. I suggest you find a broker ASAP as the idea you originally suggested could have got you into a lot of trouble!

stator

Is it because you don't qualify for the Help To Buy scheme?

Nationwide Save to Buy is outside the Help To Buy scheme but would take a few months to qualify for.

I believe Yorkshire Bank and Yorkshire BS both offer 95% mortgages outside of the Help To Buy scheme

kingstreet

As commission from a high street lender is about 0.3% to 0.33% of the mortgage amount, that's £300 to £330 per £100,000 of borrowings a fee-free broker will be very attentive to your needs if you are borrowing £200,000 or more.

Those borrowing £50,000 to £75,000 may have a different experience. As an example, we do shared ownership business in the West Midlands. Our last case was a £40k mortgage and the commission was £136. Without charging our £250 fee we would have had to turn that client away...

exoteric - as a matter of interest, what did your broker earn on your case? Just name the lender and mortgage amount, please and we'll work it out.

exoteric

kingstreet wrote: »

exoteric - as a matter of interest, what did your broker earn on your case? Just name the lender and mortgage amount, please and we'll work it out.

I'll PM you.

kingstreet

Nationwide's lowest STB rate at 95% is 4.79% with £499 fee.

kingstreet

exoteric wrote: »

I'll PM you.

Cheers. exoteric's broker commission was £1,197 so hopefully they covered their overheads and made a profit and have no need to charge a fee if that's the kind of income they generate each case.

Many of us don't earn anything like that and that's why the fee is necessary.

Let's not get away from the point here. The OP was going direct to a lender which wouldn't actually give them what they needed and instead of looking for an alternative, the OP was trying to find a way to fit in that lender's hole...

exoteric

kingstreet wrote: »

Cheers. exoteric's broker commission was £1,197 so hopefully they covered their overheads and made a profit and have no need to charge a fee if that's the kind of income they generate each case.

Many of us don't earn anything like that and that's why the fee is necessary.

To be fair, I'd have been happy to pay a fee for the service I got - as the saying goes (at least on this board) a good broker is worth their weight in gold!

Thrugelmir

moldypeach wrote: »

Thanks for the responses


For curiosity's sake, isn't this not much different to borrowing money from your parents, which is really common for first time buyers? Its not the entire deposit, the majority of it is our own money so we won't be financing the entire mortgage with debt. If we were making up the shortfall with money borrowed from family it would be less frowned on. Is it something to do with the fact that my partner would be living at the property also, as opposed to family who have 0 interest in it at all?

Saving for a deposit demonstrates an ability to manage money over the longer term. It shows discipline and commitment. Something that's required to maintain payments over 300 to 400 months. Anybody can borrow money then worry about repaying it later. Then the probability of financial misfortune rapidly increases.

jimjames

moldypeach wrote: »

Hmm ok thanks


A final question, if I may - at what point does the deposit need to be provided? I.e. do you need to have the full deposit at the time of applying for the mortgage? If we had more time, we could continue saving our own funds while the whole process is going on.


We are first time buyers so really all of this is completely unknown. It would be ideal if we could go to a proper broker but we can't afford more fees!

You normally need to provide 10% of purchase price for deposit at exchange of contracts. Just had to hand that over to solicitors today for our purchase.

amnblog

I assume the 'mortgage adviser' in the original post was Lloyds in house staff?