To ask for money for a house deposit?

[OooAwkward]

Me and DH are looking to buy our first house but are struggling to find something suitable for our family on the deposit we have managed to save.

We have seen a gorgeous house which is perfect for us and which we just love but we'd need about £5,000 more for the deposit.

I really hate the thought of asking someone for money but, my grandparents (who I am very close to) are wealthy and me and H were considering asking them for help. We would pay it back so it wouldn't be a gift as such but it would obviously be a large 'loan'.

WWYD? Should you always wait until offered or would you ask in this instance?

I don't think your offer would be a accepted without mortgage in principle. We couldn't even get a viewing in few houses without it.

Ask. Lazy mouth never got anywhere

We do have an offer in principal for more than the house is worth. We were just looking at ones under our highest borrowing limit because we don't have enough deposit for a house that much.

You need to be very careful. The advice of a mortgage in principle is sound but they may be very unwilling if you are "loaned" the deposit.

5000 pounds on deposit is massive difference in price. What is the price of the house compare to what, if you don't mind me asking? Do you need this bigger deposit so you can afford payments?

You should ask for the extra if you need it. You won't lose anything by asking, but I would do it before putting offer in.

Yes, I know they'd need to sign a gifted deposit letter to say they don't want the funds back, don't have any interest in the house etc...

I actually work in conveyancing. Was hoping to pay them back just privately in either instalments or save to do so.

They may obviously say we can have it as a gift if I asked but if we are to ask, we want to at least offer to pay it back.

Absolutely would ask before putting an offer in definitely!

I'd ask, as long as you don't feel it will damage the relationship if they are unwilling.

Sorry that sounded rude 'I actually work in conveyancing' 😂 I just meant I'm conscious of the process.

I’d ask, £5,000 isn’t a lot of money if they’re well off and most grandparents want to see their grandchildren set up in their own home (in my experience anyway!)

Another reason I'd be keen to pay it back is that there a few grandchildren. I'm the eldest so none of the others are at house buying ages yet but I wouldn't want them to feel like they were in a position of having to gift it to all of us iyswim.

Do you need this bigger deposit so you can afford payments

No the monthly payments aren't a problem. We live in a high rent area at the moment so we'd still be saving money paying this mortgage than renting.

Honestly I think it's fine. If you're asking for a loan I would go to them with a payment plan already set out and proposed terms etc, that way there's no awkward feeling that you're asking for a handout. All they can do is say no!

Absolutely ask them. Sure they'd love to see you enjoy it now rather than when they are gone.

I don’t know if it would suit you but Halifax do a mortgage where a family member puts an amount of money in a savings account for three years that matches the deposit you’d ordinarily need and it acts as your security. They get 2.5% interest on that money (more than most savings accounts) if all goes well but it’s obviously at risk if you don’t keep up your payments. That way you wouldn’t need to loan the money or mislead your provider.

I think they would need to put up the full deposit, though, rather than just the £5k

Thank you, you've made me feel a little less cheeky!

Remember that you are not losing anything by asking. Especially when you plan to repay it
Good luck!