Right to aquire deposit

strawb_shortcake

aoleks said:

you can't get a mortgage at the moment, I'm afraid. regardless of discounts, property type (RTB) and other details, you will need a deposit (cash), at least 5% of the value of the house. what you say doesn't make sense, because a £9000 deposit plus a £81000 mortgage would mean you pay £90k for the house, when in fact it's only worth £81000.

your income is also insufficient to cover the mortgage based on what you said, unless you have an extremely good maternity pay arrangement (90%+ of your usual income) or a partner who earns enough. while they will use the payslips you provided, you have an obligation to inform them of a change of circumstances, which maternity leave is. if you don't, it amounts to mortgage fraud and that could mess you up for life, where no lender will ever touch you again.

The house is worth £90k the discount is £9k hence the £81k mortgage. The value of the house doesn't change.
The discount is effectively the equivalent of a 10% deposit which we've already established some lenders will take into account and use the discount as the deposit 

jkrbec

aoleks said:

you can't get a mortgage at the moment, I'm afraid. regardless of discounts, property type (RTB) and other details, you will need a deposit (cash), at least 5% of the value of the house. what you say doesn't make sense, because a £9000 deposit plus a £81000 mortgage would mean you pay £90k for the house, when in fact it's only worth £81000.

your income is also insufficient to cover the mortgage based on what you said, unless you have an extremely good maternity pay arrangement (90%+ of your usual income) or a partner who earns enough. while they will use the payslips you provided, you have an obligation to inform them of a change of circumstances, which maternity leave is. if you don't, it amounts to mortgage fraud and that could mess you up for life, where no lender will ever touch you again.

Not sure you are correct there, if a house is valued higher than what is being paid for it then some lenders allow this difference to be used for the deposit, it’s a similar scenario to a concessionary mortgage surely?

87becca87

aoleks said:

you can't get a mortgage at the moment, I'm afraid. regardless of discounts, property type (RTB) and other details, you will need a deposit (cash), at least 5% of the value of the house. what you say doesn't make sense, because a £9000 deposit plus a £81000 mortgage would mean you pay £90k for the house, when in fact it's only worth £81000.

your income is also insufficient to cover the mortgage based on what you said, unless you have an extremely good maternity pay arrangement (90%+ of your usual income) or a partner who earns enough. while they will use the payslips you provided, you have an obligation to inform them of a change of circumstances, which maternity leave is. if you don't, it amounts to mortgage fraud and that could mess you up for life, where no lender will ever touch you again.

The house was valued at £90,000 and i get £9000 discount which means i only have to pay £81,000. So my question was can i use the £9000 as the deposit for a mortgage. 

As for my maternity pay i am lucky as i work for the NHS so they have a good maternity scheme. I get omp aswell as smp. My maternity pay is not terrible but is sufficiently lower than my usual wage. 

I have gave them payslips from before i went off and also one for November's pay so they are aware of my change in circumstances. 

I hope this clearer. 

thesouthernnortherner

I work in a HA, and yes, some lenders will allow the discount to be used as deposit. You will need around £1.5k for solicitors' fees.

ACG

You can use the discount as the deposit.
Some lenders (I think Barclays for example) would still need you to put a deposit in yourself, but only a minority of lenders. 

87becca87

Just wanted to update that i have been offered my first mortgage with santander, discount was used as deposit and being on maternity leave has had no impact with my application. Actually i flew through the application process it was very easy and straight forward. No questions asked about any of my documents. I hope this helps anyone else in the same situation as me. Very happy right now ☺️

london21

Your discount is on the low side might be why you are struggling to use as discount. 

Might need to save 10% to widen your choice of lenders or speak with a broker if any lender allows 10% RTB discount to be used.