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Can I pay for a property with a mortgage and the balance with cash?
sheanncam
Posts: 5 Forumite
If I have a mortgage offer of £150k and the house I want to buy is £170k, can I offer the vendor the balance of in £20k cash? Is this allowed? Any help greatly appreciated.
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As in folding paper cash? Absolutely no way. Why would you want to?0
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Use 20k as your deposit
I am not a cat (But my friend is)1 -
I have > £20k for a deposit, but due to my age the payback period is considerably reduced and the affordability is affected, but the vendor wants what they want which is more than the mortgage offered, and we really want to stay in the house we have rented for 10 years, but don't want to do anything that is not allowed. Hope this makes sense.0
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I know it sounds daft, but just wanted to check anyway
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It doesn't make much sense. Unless you can find a 100% mortgage (which are pretty much non-existent these days), your purchase price is always going to be more than the maximum mortgage you can borrow. Just to clarify, you didn't mean hard cash by "cash", just money in the bank?0
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It's called a deposit surely? Unless you mean an actual pile of notes, in which case you'll rin into trouble with check put in place to prevent money launcering!sheanncam said:If I have a mortgage offer of £150k and the house I want to buy is £170k, can I offer the vendor the balance of in £20k cash? Is this allowed? Any help greatly appreciated.0 -
As above, this does not make sense. The bank will lend you £150k, so put in the £20k as a deposit? If the bank will only lend you £130k, you put in £40k as a deposit?
The bank will only lend you what they will lend you, but you just make up the difference with more cash.0 -
Thanks for the advice, I've probably gotten things confused 1
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You transfer your solicitor 20k (plus stamp duty and their fee), and you send them a copy of your mortgage offer.
They get £150k from your mortgage provider, and send the £170k to your vendor, the stamp duty (if applicable) to HMRC and keep their fee. Simples. This is how the process works all the time. The £20k is referred to as the 'deposit'.
Yes, there is no reason you can't give your solicitor physical cash in a carrier bag (or take it to their bank and deposit it into their account). If so, they would want to know where it came from (i.e. is it drug money). If you can prove where it came from, then no problem.1 -
Maybe explain what you mean by what the "mortgage offered"?sheanncam said:I have > £20k for a deposit, but due to my age the payback period is considerably reduced and the affordability is affected, but the vendor wants what they want which is more than the mortgage offered, and we really want to stay in the house we have rented for 10 years, but don't want to do anything that is not allowed. Hope this makes sense.
How much are they offering to lend on this property?0
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