Mortgage first time buyer

donnabobs85

I am a first time buyer and was wondering if I am able to borrow a few thousand extra on my mortgage to pay for furniture etc so that I can afford to put down a 10% deposit rather than a 5%?

nimbo

I was under the impression that the deposit and mortguage paid for the house.

Anything else needs to come out of your pocket. So if this is the case you'd need to put down the 5% of you feel the need to pay for new furniture. I know that I'm planning for 15%. 10% for the deposit and then then the rest for fees and things we'll end up needing. I think there needs to be a little room for a contingeny fund - even those emergencies of oh no the toilet doesn't flush - or that window doesn't actually close properly so you need to call a handy person.

I'm also being firm and having a removal company - we moved ourselves last time and it was too much stress so it'll be a treat to us and our friends who helped last time. Haha.

However couldn't you manage with some older bits for now and maybe paint them - etc until you can afford new? We have some great charity shops that sell only furniture. And where you are living now do you have any thing you can take?

I know before I went to uni my mum bought be a wooden piece of furniture for birthdays and Christmas for a few years before I left. I still have the book case and a bed side table. I can't remember what the others were now.

I have my brothers second hand leather sofa and slowly added bits i needed. We're holding off buying a sofa that we love until we've bought a house so that we know it will fit. but when we do buy we won't have all new at once.

Is there any friends or family who can offer an old sofa or a small table etc to help you out? Even freecycle and gumtree can be helpf there. My sister has a beautiful coffee table that she was give by a relative and she still has this 10 - 15 years after it was gifted. It was going to be firewood until she said she was moving and needed furniture.

Marvel1

Short answer: No

csgohan4

Lender only lends on the house, not your own personal items

Mobeer

Op, you seem to have things a bit confused. When a lender works out the percentage deposit they really:
- calculate the loan to value (mortgage divided by valuation) %
- then your deposit is 100% minus the loan to value

So if current plan
- house valued at 200k
- mortgage 190k
- then loan-to-value = 95% (190k/200k)
- deposit = 5% (100%-95%)

But if you propose to borrow more to pay for 5k of furniture:
- house valued at 200k
- mortgage 195k
- then loan-to-value = 97.5% (195k/200k)
- deposit = 2.5% (100%-97.5%)

Borrowing more has reduced your deposit, possibly to the point the mortgage company won't lend on this basis.

Cakeguts

Mortgage is for the house only. If you can't afford new furniture buy second hand or use freecycle.