Mortgage Advice

Dewhirstn

Good Afternoon Everyone,

My Wife and I are starting to think seriously about trying to get a mortgage, we have been renting for years and quite honestly we've had enough of lining someone else's pockets.

The problem that we have is we are terrible at saving, every month I put between £500 and £1000 in our joint savings account, and 9 times out of 10 75% of that is gone by the end of the month, I've looked into our spending and bills and I know it is just frivolous spending, I'm doing what I can to try and reduce our spending, but at the moment it doesn't seem to be helping much.

Anyway, the question I have is, would it be worthwhile or even a good idea for us to get a joint loan to cover the cost of the deposit and fees, and apply for a mortgage with that? I understand that this would raise our bills, but we've never had any trouble paying our bills, it's just saving we have issues with.

I've worked it out and for the property value we are looking at we'd need around £6k-£7k, I'd ideally get this out on a 5 year loan, obviously it's going to end up costing us more than the amount we borrowed in the long run, but surely it would save us more than it would cost us thanks to not paying rent?

Any advice would be much appreciated.

kingstreet

You can count on a couple of fingers the lenders who accept a loaned deposit. Let's hope you satisfy their criteria and their rates aren't that bad for what you need.

[Deleted User]

Dewhirstn wrote: »

Anyway, the question I have is, would it be worthwhile or even a good idea for us to get a joint loan to cover the cost of the deposit and fees, and apply for a mortgage with that?

Even aside from lenders not accepting a borrowed deposit, it;s a terrible idea.

Borrowing is just like saving, just in reverse and more expensive.

csgohan4

look at the debt free wannabee forms and post a SOA to get your spending down as much as possible

Dewhirstn

Sorry, what's an SOA?

Thanks for all your replies so far.

davidwood681

I know you won't like this answer because it's harder but you need to save as much as you can over the next few YEARS and start looking at mortgages after that.

Now isn't the time