Solicitor fees from overdraft?

Confusedftb_2

Hi,

My partner and I have saved up the money for our first home and our mortgage has been agreed in principle.
However, whilst shopping around, we've not been able to find much in our original price bracket of 190k, and the majority of houses we are looking for are around 210k. Due to the extra money we would need for a deposit in a 210k house, we were wondering whether it would be possible to use our overdraft for solicitor fees etc. We are saving as hard as we can so that we don't need to do this, however as we are actively looking for houses, we may find the perfect home before the next pay day rolls around. We're probably talking between 1-2k tops and the overdraft is already in place (total of 4K between us) but we just don't use it at the moment. Has anyone had any experience of this or know if it will be rejected by ourmortvage advisor/solicitor?

NB: our mortgage in principle allows us to borrow up to 300k so we're still within our affordability.

Thanks for any advice you can give

pinkshoes

I would say keep saving!

The overdraft will be needed should you need to pay for something in the house!

VintageHistorian

Keep saving, you could fall in love with a house that needs work, in which case you'll be annoyed that you've already committed the overdraft to other costs and won't be able to start work as quickly as you need/want.

G_M

Buying property always costs more than expected. You need a contigency fund, let alone budgetting yourself so tightly you have to use an overdraft for essential fees.

If you cannot afford to buy, don't buy (or buy something cheaper).

sheff6107

Don't use the overdraft if you are sorting out a mortgage offer.

Otherwise, so what? Plenty of people live in their overdraft and it can be a very cheap method o borrowing if you're with the right bank

Confusedftb_2

Thanks all! Appreciated. We just wondered about the legalities of this if the house right did pop up. It hasn't so far, so fingers crossed we'll have the funds saved before it does.

Thanks again guys

ThePants999

You're going to find a couple of grand's worth of things you need to do when you move in.

sparky130a

Confusedftb wrote: »

Hi,

My partner and I have saved up the money for our first home and our mortgage has been agreed in principle.
However, whilst shopping around, we've not been able to find much in our original price bracket of 190k, and the majority of houses we are looking for are around 210k. Due to the extra money we would need for a deposit in a 210k house, we were wondering whether it would be possible to use our overdraft for solicitor fees etc. We are saving as hard as we can so that we don't need to do this, however as we are actively looking for houses, we may find the perfect home before the next pay day rolls around. We're probably talking between 1-2k tops and the overdraft is already in place (total of 4K between us) but we just don't use it at the moment. Has anyone had any experience of this or know if it will be rejected by ourmortvage advisor/solicitor?

NB: our mortgage in principle allows us to borrow up to 300k so we're still within our affordability.

Thanks for any advice you can give

If you're into the overdraft for a solicitor at £210K how on earth do you propose to service a £300K mortgage? And then maintain said property?

Glbooth3

As OP stated, they had budgeted for houses around 190 and had saved enough for deposit and fees etc, but now it's lookin like 210 ish will be needed, meaning more deposit and less fees saved, in a few months they would of saved it again but op is whittling in case the perfect house comes up beforehand. Solicitors tend to take a deposit at the beginning and want the rest at completion which is usually a few months down the line anyway so hope this helps OP. Ours was 250 to begin with and the rest (around 750) will be due at the end.

sparky130a

Glbooth3 wrote: »

As OP stated, they had budgeted for houses around 190 and had saved enough for deposit and fees etc, but now it's lookin like 210 ish will be needed, meaning more deposit and less fees saved, in a few months they would of saved it again but op is whittling in case the perfect house comes up beforehand. Solicitors tend to take a deposit at the beginning and want the rest at completion which is usually a few months down the line anyway so hope this helps OP. Ours was 250 to begin with and the rest (around 750) will be due at the end.

That's still a £20K anomaly?

Plus the other £90K?

The simple fact is this. If you need the overdraft to pay your initial legal fees you ARE over stretching yourself.

It's not a debate. It's fact.

hounsehunterftb

IF you need some time more to get those extra bucks, why not pay it on credit card? Only post "completion" though. You normally don't pay the solicitors until you complete on the house.