Mortgage in principle query

katie4

Hello everyone I’m wondering if this is allowed? 

AIP £138,250 - this is 63.34% mortgage £80k deposit (equity in our current house with £10k left for fees/moving costs etc) with the new house purchase price we’re looking to buy being £218,250

I’m wondering if I have an offer £10k under and we wanted to accept can still use the full £80k equity and fund the solicitor fees/moving costs from another source? Family or maybe even credit card?

eddddy

Is £138,250 the limit of what you can borrow on a mortgage?

If the source of the 'extra money' is family...

• If you're going to pay the solicitor's fees using money from a family member - the solicitor might want to do Anti-Money Laundering checks on it. e.g. Ask for bank statements from the family member

• The solicitor might also want the family member to sign a declaration saying it's a gift, not a loan.

• (And it would probably better if the family member pays the money into your account, then you pay the solicitor - rather than the family member paying the solicitor directly.)

If the source of the extra money is a credit card...

• Most solicitors don't accept credit card payments

• And it might be risky to take on credit card debt before completion. Your mortgage lender might do a final credit check just before completion, and they might be alarmed if your credit card debt has shot up by up to £10k. In theory, they could withdraw the mortgage offer.

But if, for example, the removal company accept credit cards, and they will wait until after completion to get paid - that could work.

Bigphil1474

Would have thought at those prices, your fees and costs would be closer to £7k. 

Agree with above, although your movers will probably want paying in advance, ours did. The £5-6k ish on solicitors fees, EA fees, and Stamp duty are normally paid through the solicitor before you get the house proceeds.

Tell your buyer you can only accept a £5k price reduction? or pass some of the reduction on to your purchase?