Ideas on how to get house

class2ldn

Hi guys, me and my wife have seen a house we really really like but according to the broker we can't get enough from a lender and are about 10k short.
The house we are looking at is up for 385k.
Our current mortgage is 204k and we've agreed to sell ours at 270k.
This leaves us with 66k deposit,  now once you factor in estate agent fees, legal fees and stamp duty we are looking at around 52k left. Broker says we need 61, I have 13k sitting on a credit card available I never use but obviously any additional borrowing will lower our amount even further.
I could pay legal fees etc on a credit card but again this is frowned upon I believe. 
Only way I can see is to get a gifted loan which is not going to happen I dont think.
We can easily afford the monthly payment on the house but are just short with the deposit because of the fees . 
We've got no chance completing before the stamp duty comes back in so 6750 is what we would have to pay. 
Any ideas on what we could do?

Slithery

Look for a cheaper property. You can't afford this one.

class2ldn

Typical helpful response on here cheers.
Seeing as we were paying more a month for our current house when we bought it id suggest differently,  we can easily afford it but they won't lend us enough to do so.

comeandgo

Get a second job to help save more?  How much a month do you save?  A purchase can take months and months, you may have it before exchange.   Just because the asking price is £385k the sold price could be under that or over £400k,

dr0psofjupiter

class2ldn said:

Typical helpful response on here cheers.
Seeing as we were paying more a month for our current house when we bought it id suggest differently,  we can easily afford it but they won't lend us enough to do so.

But it's true. You can't afford it. 
You might be able to afford the monthly payment as it is now, but the reason the banks won't lend you enough is because by their tests you failed the affordability. Their stress tests measure the % of your mortgage/income if the interest rates were to rise. 

princeofpounds

class2ldn said:

Typical helpful response on here cheers.

Unfortunately it is largely correct however.

You can try getting extra work to raise the money that way, but short of illegal activities it's probably going to take you too long.

Do you have any assets you can sell? A car you could do without for a couple of months, then get a new one once the deal is settled?

Have you tried negotiating on the price?

TBagpuss

You could make an offer at the level you can afford - worst case scenario the sellers turn it down.

You can look at whether you can scare up any further funds - temporary second jobs, selling items on e-bay, cutting your spending? £10K is a lot to try to make in those ways in a short period of time, but if you do manage to save a bit more than it will give you more choices even of you miss out on this specific property. 
Since you are using a broker presumably they are confident hat you won't be able to borrow more, they've already looked at the range of mortgages available to you. You could ask your broker if there are any other options - for instance, how long is the term you are looking at , is applying for a mortgage over a longer term (even if you intend to then overpay and repay in the same timescale) n option?

Unfortunately it does sound as though right now,  Slithery's advice is correct, if unpalatable - you're £10K short so unless someone is willing to give you £10K, or the sellers to accept £10K less, you can't currently afford this property. 

class2ldn

comeandgo said:

Get a second job to help save more?  How much a month do you save?  A purchase can take months and months, you may have it before exchange.   Just because the asking price is £385k the sold price could be under that or over £400k,

Yeah I get what your saying but I dont think k wed be able to save 10k up in time. 
I earn well and between us we are on a really good wage but it still won't be quick enough. 
We offered 380 but they want the full asking price as its had a lot of interest.
Frustrating 

Tiglet2

A lot of solicitor/conveyancing firms do not accept payments by credit card, so rather than it "being frowned upon", they simply won't accept payment this way.

With conveyancing taking a long time at the moment, you may still have around 5 months before you need to pay the bulk of the monies owed.  How much can you save in that time?

class2ldn

Tiglet2 said:

A lot of solicitor/conveyancing firms do not accept payments by credit card, so rather than it "being frowned upon", they simply won't accept payment this way.

With conveyancing taking a long time at the moment, you may still have around 5 months before you need to pay the bulk of the monies owed.  How much can you save in that time?

Well im working extra Sundays at the moment as they are 500 quid a day.
I can also put in for extra rest days but there's no assurance we will have the money available.
We've got a couple of credit cards im paying down from our wedding etc, paying out 550 a month.
Do lenders look at the monthly outgoing or the overall amount left, obviously I could just pay the minimum amount as they are 0% but would take longer to pay but it would help us save, once we had the house i could increase it back up to pay them off.

MaryNB

class2ldn said:

Hi guys, me and my wife have seen a house we really really like but according to the broker we can't get enough from a lender and are about 10k short.
The house we are looking at is up for 385k.
Our current mortgage is 204k and we've agreed to sell ours at 270k.
This leaves us with 66k deposit,  now once you factor in estate agent fees, legal fees and stamp duty we are looking at around 52k left. Broker says we need 61, I have 13k sitting on a credit card available I never use but obviously any additional borrowing will lower our amount even further.
I could pay legal fees etc on a credit card but again this is frowned upon I believe. 
Only way I can see is to get a gifted loan which is not going to happen I dont think.
We can easily afford the monthly payment on the house but are just short with the deposit because of the fees . 
We've got no chance completing before the stamp duty comes back in so 6750 is what we would have to pay. 
Any ideas on what we could do?

You'll need a gift or a loan, a gifted loan isn't a thing. A gift is the easiest route, provided there is sufficient proof of the source of the funds and it is from an approved person (many lenders won't accept a gift from e.g. an employer or very distant relative). If it's a gift it means the person giving you the money doesn't retain any interest in the property and is not expecting any repayment. If someone does offer to lend you the money this could be a lot trickier and something you'll need to talk to your broker about. It could go against you when it comes to affordability. 

It's not just about being able to afford it now, the bank will check your affordability against a much higher interest rate to see if you'll be able to repay if interest rates increase. My interest rate is 1.68% but Halifax checked approx 9% as well, which they said was the highest interest rate in the preceding 20 years. It would more than double my repayments. I could just about manage it but it would be tough. 

 All banks have a cap on lending and will have strict criteria, especially after significant changes to mortgage affordability rules were brought in as a result of the 2008 crash. Plenty of people are limited by the salary multiplier despite being able to afford higher monthly repayments. You may be able to afford higher repayments but you cannot afford this house. If the bank won't lend it more, and you can't get a higher deposit, you cannot afford it.