Andy Posted October 29, 2012 Share Posted October 29, 2012 Hi Most lenders won't allow you to use a loan as the deposit for your mortgage - regardless of what they have told you. The deposit should be savings and you may be asked to provide evidence of this to the lender. In terms of your credit history, if you don't have any history of borrowing, you won't get either a loan or a mortgage. Can I check that the problem with your credit rating is that you've never had credit, rather than that you've made late payments or defaulted? If so you could consider starting to build a credit history by applying for a credit card but you must pay it off in full, on time each month otherwise you'll make things worse. Once you have a history of managing small amounts of credit responsibly, you can then apply for larger items such as loans and/or mortgages. Remember that a £20k loan over 10 years will cost circa £250 per month, and you'd have to find that amount as well as your mortgage. Link to comment Share on other sites More sharing options...
Eckolad Posted October 29, 2012 Share Posted October 29, 2012 Totally agree. We need to break this "you must own property" culture. Totally , look at places like Germany, france Or people need to remove the snobbery from House ownership, look at cheaper places Theres a lot of places within driving distance of sheffield that would make it quite possible to own a house http://www.rightmove.co.uk/property-for-sale/property-24627459.html , http://www.rightmove.co.uk/property-for-sale/property-35989120.html Both under 65K, you can commute into sheffield from there in about in about 30 mins. ok not the best of areas, but solid communities, solid houses, not going to fall down anytime soon But people would rather spend 3 times as much just to live in a suitable postcode I started with a very cheap house in Eckington, then moved to another cheap house in Mansfield,before moving up and now have a nice house in a good area but mortgage free. If i hadnt been able to sell the at the right time i would still be living in a cheap area. Link to comment Share on other sites More sharing options...
Jim Hardie Posted October 29, 2012 Share Posted October 29, 2012 I once asked my solicitor for advice when I was considering lending money to the prospective purchaser of my property. The buyer had proof of an offer of mortgage but was a couple of thousand short of the deposit. I was desperately trying to keep the deal alive as I didn't want to lose the house I was buying. The solicitor said he wasn't able to draw up an agreement in these circumstances and even if he could he would be obliged to inform the buyer's lender who would then withdraw the offer. Link to comment Share on other sites More sharing options...
Leah-Lacie Posted October 29, 2012 Share Posted October 29, 2012 I once asked my solicitor for advice when I was considering lending money to the prospective purchaser of my property. The buyer had proof of an offer of mortgage but was a couple of thousand short of the deposit. I was desperately trying to keep the deal alive as I didn't want to lose the house I was buying. The solicitor said he wasn't able to draw up an agreement in these circumstances and even if he could he would be obliged to inform the buyer's lender who would then withdraw the offer. The person I was buying from was doing something similar, they were offering to pay 5% of the purchase price for you if required, and he tried to wangle it so he would be pretending to pay 10% instead (or something like that, it was years ago now) but as he was selling with Halifax and my mortgage was with them we couldnt get round it. Posted from Sheffieldforum.co.uk App for Android Link to comment Share on other sites More sharing options...
truman Posted October 29, 2012 Share Posted October 29, 2012 I once asked my solicitor for advice when I was considering lending money to the prospective purchaser of my property. The buyer had proof of an offer of mortgage but was a couple of thousand short of the deposit. I was desperately trying to keep the deal alive as I didn't want to lose the house I was buying. The solicitor said he wasn't able to draw up an agreement in these circumstances and even if he could he would be obliged to inform the buyer's lender who would then withdraw the offer. Couldn't you have dropped your price by a couple of grand if you were worried about the house you were buying and obviously asked your vendor to do the same? Link to comment Share on other sites More sharing options...
Leah-Lacie Posted October 29, 2012 Share Posted October 29, 2012 What we also thought to do, was make an offer a lot higher than the asking price (10k or so) as the house was 65k (ish) and mortgage was for 90k (80%) and we could have made an offer higher and been well within the limit. But, as the house was for sale with the same company that provided the mortage and it had been valued by them, we failed again Posted from Sheffieldforum.co.uk App for Android Link to comment Share on other sites More sharing options...
Jim Hardie Posted October 30, 2012 Share Posted October 30, 2012 Couldn't you have dropped your price by a couple of grand if you were worried about the house you were buying and obviously asked your vendor to do the same? It was thirty years ago. £2k was a lot of money then. Link to comment Share on other sites More sharing options...
truman Posted October 30, 2012 Share Posted October 30, 2012 It was thirty years ago. £2k was a lot of money then. Fair enough.. Link to comment Share on other sites More sharing options...
Cyclone Posted November 3, 2012 Share Posted November 3, 2012 Couldn't you have dropped your price by a couple of grand if you were worried about the house you were buying and obviously asked your vendor to do the same? That wouldn't work as it would change the ltv ratio and mean the mortgage had to be recalculated. So 2k off the price might only mean 200 off the deposit. Link to comment Share on other sites More sharing options...
WeX Posted November 3, 2012 Share Posted November 3, 2012 f you can afford the repayments on the mortgage and the loan, why not be a little more patient and save up the deposit? Nothing short of life and death situations are that important. Link to comment Share on other sites More sharing options...
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