Deposit... get back?

peterc2609

Hi,

I have money saved, but basically for tax bills and other stuff... I'm self employed.

Is there any way I could use this to show I have a deposit... but
then get it back once the mortgage is done?

Conrad

No there is not. Lenders require a deposit in order to reduce thier risk of loss in that clients who input thier own cash have a greater emmotional engagement with a property they have put thier own hard earned savings into.

Also in the even of repossesion there is more of a cushion against losses, for example when a person is repossessed they might deliberately wreck the property, plus money is needed for baliffs, courts and so on. A depsoit gives some 'fat' to help cover these costs.

If you were to simply extract the deposit post sale, you would remove these benefits the lenders has.

The bottom line nowadays for self employed clients in particular, is that you need to save hard if you want to get on the property ladder.
When I bought my first home I save 60% of earnings - it really was'nt that difficult despite my being on only a modest income back then.

chappers

Oh yes I remember the good old days when you had to save for a deposit.
Bloody glad we did now.

silvercar

You have to apply for the amount you need to borrow, but it can only help your case if you can show that you already have money set aside for rainy days etc.

When it gets to underwriting stage, humans look at your case and showing deposits could make the difference.