DIP declined by our existing lender?

Thrugelmir

Book an inhouse appointment with your current mortgage lender. Your changed circumstances may well require manual input to obtain a DIP. Even if don't eventually follow this through. You'll be a lot wiser. 

sunflower92

Thrugelmir said:

Book an inhouse appointment with your current mortgage lender. Your changed circumstances may well require manual input to obtain a DIP. Even if don't eventually follow this through. You'll be a lot wiser. 

Thank you, sorry for all the questions..

can I just ask the process differs then from that for first time buyers, it isn’t as “simple” as getting the say 10% deposit and 90% mortgage 

eddddy

sunflower92 said:

can I just ask the process differs then from that for first time buyers, it isn’t as “simple” as getting the say 10% deposit and 90% mortgage 

Just to make sure you're not still confused.

You say you have £45k equity in your current house. Assuming £10k of that goes on fees and expenses, and assuming you have zero savings, that leaves you with £35k.

On a £180k house - £35k would be roughly a 20% deposit. So you'd only need an 80% mortgage.

Or are you planning to spend a chunk of the equity on something else?

SameOldRoundabout

You likely won’t need a cash deposit. Your equity will be your deposit. How much of that £45k you put down is up to you. It’ll cost £5-10k for your estate agents, legal fees and stamp duty, then you are free to choose how much to put towards the new house. The more the better obviously, for us we are putting £40,000 to the new house, giving us an LTV of 82% and we are keeping what’s left after costs to remedy urgent issues with the house. 

sunflower92

eddddy said:

sunflower92 said:

can I just ask the process differs then from that for first time buyers, it isn’t as “simple” as getting the say 10% deposit and 90% mortgage 

Just to make sure you're not still confused.

You say you have £45k equity in your current house. Assuming £10k of that goes on fees and expenses, and assuming you have zero savings, that leaves you with £35k.

On a £180k house - £35k would be roughly a 20% deposit. So you'd only need an 80% mortgage.

Or are you planning to spend a chunk of the equity on something else?

Thank you! At this point I think it’s fairly obvious I have no clue about this subject!

the house needs some renovation so we was hoping to use some of the equity on that. So I guess I was asking if we would be expected to use all of the equity on a deposit

sunflower92

SameOldRoundabout said:

You likely won’t need a cash deposit. Your equity will be your deposit. How much of that £45k you put down is up to you. It’ll cost £5-10k for your estate agents, legal fees and stamp duty, then you are free to choose how much to put towards the new house. The more the better obviously, for us we are putting £40,000 to the new house, giving us an LTV of 82% and we are keeping what’s left after costs to remedy urgent issues with the house. 

Thank you! This clears that up for me! 

bucksbloke

Did you go to a broker? I never deal with lenders directly. A good broker is worth their weight in gold!

sunflower92

@bucksbloke do you think so? I think that is the next step

bucksbloke

sunflower92 said:

@bucksbloke do you think so? I think that is the next step

yes, always. Good brokers know the lenders, they know the products. They will know where best to place your business. I've never had a referral or rejection whilst using a broker.

sunflower92

bucksbloke said:

sunflower92 said:

@bucksbloke do you think so? I think that is the next step

yes, always. Good brokers know the lenders, they know the products. They will know where best to place your business. I've never had a referral or rejection whilst using a broker.

Thank you! I’ll look into this