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Full deposit when applying for a mortgage
scotgal30
Posts: 72 Forumite
Hi All,
My partner and I are buying a new build, the expected completion has been given a 3 month window (March-May 2019) we’ve been notified our house will be released for sale in two weeks where we pay the other half of the reservation deposit £250. Once this is paid we are given 28days before we have to sign the missives and pay a further 2K.
We have a DIP at the moment, for a 15% deposit. We are being gifted 25K as part of our deposit and 10K of our own money.
The thing is we haven’t yet saved up the whole of the 10K and are on target to have this by February. When we are applying for the mortgage with the 15% deposit we will only have 25K there, will this stop our chances of being accepted for the mortgage? Do we need to have all 35K before we can apply for the mortgage or will they accept we will be able to save the further 10K before the monies are due in March at earliest?
Funny thing is if we don’t complete in March our mortgage offer will be no more as they only last 6 months!! Tight window, huh?
Any help would be gratefully received!
My partner and I are buying a new build, the expected completion has been given a 3 month window (March-May 2019) we’ve been notified our house will be released for sale in two weeks where we pay the other half of the reservation deposit £250. Once this is paid we are given 28days before we have to sign the missives and pay a further 2K.
We have a DIP at the moment, for a 15% deposit. We are being gifted 25K as part of our deposit and 10K of our own money.
The thing is we haven’t yet saved up the whole of the 10K and are on target to have this by February. When we are applying for the mortgage with the 15% deposit we will only have 25K there, will this stop our chances of being accepted for the mortgage? Do we need to have all 35K before we can apply for the mortgage or will they accept we will be able to save the further 10K before the monies are due in March at earliest?
Funny thing is if we don’t complete in March our mortgage offer will be no more as they only last 6 months!! Tight window, huh?
Any help would be gratefully received!
0
Comments
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They won't consider money that you don't yet have as part of your deposit so you can apply for a mortgage earlier but it will be based on the 25k only.
Expect to have paperwork signed to say that the 25k is a gift.0 -
That's not true. When you ask for a mortgage of £X for a house worth £Y, the bank don't require you to prove that you are in possession of £Y-X.0
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ThePants999 wrote: »That's not true. When you ask for a mortgage of £X for a house worth £Y, the bank don't require you to prove that you are in possession of £Y-X.
Really because we just got an offer for a mortgage and before we got the offer we had to provide proof of our deposit.0 -
Yes, I thought that’s what we would have to prove too as I’ve heard of them wanting proof. We will try and get 10K gifted too and not use it in the end....
Thanks guys0 -
ThePants999 wrote: »That's not true. When you ask for a mortgage of £X for a house worth £Y, the bank don't require you to prove that you are in possession of £Y-X.
I think that is correct for an AIP, but not for mortgage offer - they'll want proof, bank statements etc. They don't just take your word for it!0 -
On saving a deposit post-reservation, it varies from lender to lender, but typically newbuild offers last longer than six months. Correct lender selection is the key to this.
You will be expected to have a formal mortgage offer a short time after reservation, not just an agreement in principle.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
ThePants999 wrote: »That's not true. When you ask for a mortgage of £X for a house worth £Y, the bank don't require you to prove that you are in possession of £Y-X.
Incorrect actually, usually lenders will ask for bank statements to prove both your income and deposit on full Mortgage application
Otherwise it would be just your word isn't it?"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Hey - just to update everyone.
I managed to obtain a mortgage without having full deposit at time of applying.0
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