can I get a mortgage with no deposit

john-d_4

Hi all,
Me and my partner have been given the option to buy my father in laws house at a reduced rate as first time buyers. The house needs work doing to it that he hasnt the interest to do and he wants to live somewhere smaller. The average price is around £90-£95k for area and he is offering for £65k with possibly £10-£20k worth of work needed, would we need a deposit or would it be classed as having equity if we were to ask for an £80-£85k mortgage.

Thanks in advance for any help

stator

No, you can't use equity as the deposit, you'll need the cash

kingstreet

A concessionary purchase will mean any price reduction is treated as your deposit, so you won't need to out down cash.

The lender's surveyor must value the property at the higher price though.

ACG

One thing to bare in mind is what that £20k worth of work is.

It may result in a retention to some degree in which case you may need to put down some cash.

amnblog

stator wrote: »

No, you can't use equity as the deposit, you'll need the cash

This is not the case.

Whether you will need to put some cash in will depend on your profile, the property valuation, and the lender.

john-d_4

Thanks for the replies, looking online at average house price for the street its saying £103k. The work that is needed are new windows, doors, full re-wiring and new heating throughout, ideally would like a new kitchen but if couldnt lend enough then this is something we would have to save for once moved in.