PLEASE READ BEFORE POSTING
Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.Mortgage Deposit - As equity of house being purchased
benjihubbs
Posts: 6 Forumite
Good Evening,
I am looking to purchase a house from a family member, they are offering to help me with a deposit. However, that deposit would come from the sale of said house. I want this to be seen as a deposit by a mortgage lender, and not just an £X reduction on the house price, otherwise I won't be touched as I otherwise have no deposit.
What is the best way around this? Is it something that can be done?
IE: House is worth £300,000 and I am being offered £50,000 from the £300,000 sale of the house as a deposit. I need it to be a £50,000 deposit on a £300K house, not £0 deposit on a £250K house.
I really hope this makes sense, but so far google has brought up nothing.
Thanks,
I am looking to purchase a house from a family member, they are offering to help me with a deposit. However, that deposit would come from the sale of said house. I want this to be seen as a deposit by a mortgage lender, and not just an £X reduction on the house price, otherwise I won't be touched as I otherwise have no deposit.
What is the best way around this? Is it something that can be done?
IE: House is worth £300,000 and I am being offered £50,000 from the £300,000 sale of the house as a deposit. I need it to be a £50,000 deposit on a £300K house, not £0 deposit on a £250K house.
I really hope this makes sense, but so far google has brought up nothing.
Thanks,
0
Comments
-
If you're buying from a family member, some lenders offer what they call a "concessionary purchase mortgage". Here's a couple of examples:
https://www.nationwide-intermediary.co.uk/lendingcriteria/purchase_types/genuine_bargain_price
http://intermediary.tsb.co.uk/criteria/residential-criteria/concessionary-purchase/
i.e. You buy with a discount from a family member, and the discount represents your deposit.
You'd probably need to discuss what you need with a mortgage broker.0 -
Is this amount a loan, or a gift without any restrictions?
If it's a gift without restriction, then I suspect any normal mortgage will view it as exactly what it undoubtedly is - a discount. You wouldn't be getting the gift without this particular transaction, would you? If they were selling, and you were buying different properties on the open market?
If it's a loan, then add in the dislike for loaned deposits...0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards