5 percentage mortgage

[Alwaysready]

Can you get a loan to make up the deposit for a mortgage?

I doubt it. You normally have to prove that the money you provide for a deposit is yours or has been gifted and does not need to be repaid.

What Equimum says. And if you cannot fund the 5% yourself it is an indication your income may be too low to service the debt. You still have to satisfy that.

Yeah what they said times three 😬.

Even if deposit is wholly or partially gifted you have to pay a solicitor to get forms sent to gift giver for them to confirm legally that you’re not paying back.

As an aside: taking out a huge loan just before a huge mortgage would probably show up to them in the affordability check regardless of what it’s for.

Santander sometimes allow you to use a loan as a deposit, speak to a broker. They will know for sure.

Just jumping on this, sorry op, can start a new thread but has anyone self employed applied for a mortgage lately and does this 5% help much (I know earnings are relevant!)

It depends on the lender I suppose, but is unlikely for the reasons given already. You will need to provide bank statements of the money already in your account and where it came from, for a set amount of time and it will be factored in as a debt, which reduces your viability and will likely reduce what you can borrow against your earnings. Even gifted deposits are a problem for some lenders and require a fair bit of legal work which will cost additional money.

You would be best off talking to your banks mortgage advisors or seeking a specialist broker.