Advice Needed on whether deposit required.

CrinklyB82

Hi. I am after some advice on how we would need to best approach a mortgage application.  We were given a hand on to the ladder by our parents who took out the initial mortgage for us and we have just been making the payments.  We would've to now apply for a mortgage ourselves instead and we are technically first time buyers. We have about 40k left outstanding on the current mortgage in parents name and current value of property is 74k to 82k. Meaning the LTV would be below 60% . Parents would just sell to us for outstanding amount so we only need 40k mortgage.  Question is do we in all cases still need a deposit to put down or is the equity sufficient? Thanks in advance.

grumiofoundation

How do you mean ‘is the equity sufficient’ - if your parents own the property surely you don’t have any equity?

 

haras_n0sirrah

Family vendor gifted deposits are absolutely doable with the right lender.
Some lenders require you to put your own 5% in, others you can do 100% of the bit you are buying from your parents (assuming the parents are gifting the equity)

CrinklyB82

Yes the equity would be gifted to us i suppose through the value of sale being the remainder of the current mortgage.  Thank you 

foxy-stoat

If you can get yourselves £4,000 cash that you allow a 90% LTV mortgage.  Lowest deposit ever !