mortgage/deposit

[sweetsaregood]

Hi. Me and hubby are both on a good wage and are currently renting a property. A fabulous house has come on the market just up the road, and we really want it!! Does anyone know what the repayments would be on a 130,000 mortgage?
However, there is the tricky situation of the deposit, which we don't have! Now, I think that if we took out a loan of 15,000 hubby could afford the repayments out of his wage and I could afford the repayments for the mortgage on my wage.
I know that it seems really daft to borrow money in order to borrow more money but we can't see us being able to raise the money any time soon, I've saved some but it's going to take years to save up that amount.
Just looking for some advice really. I already know this isn't a great idea but would it ever be a viable idea??

Most mortgage cos won't give you a mortgage if you have borrowed the deposit. I suppose they wouldn't know about loans from family etc, but I know I had to produce bank statements showing the transfer of money to me from my parents (who were gifting it) to prove it wasn't another loan. This was through a broker for a C&G mortgage if that helps.
Repayments on £130k mortgage will be (v v approx) between £575-700 pcm for a repayment mortgage over 25yrs. You would need at least 20k deposit.
hth.

Don't know how helpful I can be but I'll try!

With the mortgage repayments, it all depends on which type of mortgage and the interest rate. I'd say go to a couple of high street banks, ask for facts and figures and they'll explain whether to go on fixed repayments, interest-only, etc. Try moneysavingexpert.com for some great articles on mortgages.

With taking out a loan for a deposit, most lenders won't lend for a house deposit. When you then apply for the mortgage, they will ask for your outgoings and you may be classed 'high risk' with a large amount of new debt. Your credit score might not even allow it.

Sorry to be a downer but this might not be the best time to get a mortgage. Save as much as you can which will bide you more time, and something even better will come along. And you won't be getting yourselves into a lot if debt for it.

but if it was gifted, i.e. that my dad took the loan for us, then it may be viable? even tho we would be paying it back?

yes if it was giften by your dad then thats fine, they dont need to know that you would be repaying it, all they would see is the money in your account you say its a gift and thats fine, we did similar, my mil gave up the deposit for our house.

our mortgage was about £130,000 its now more like £117,000 and we pay about £600 a month? or we did it went down recently, it really depends on if you go for interest only, or a fixed or a variable rate etc, you should go and shop around a bit and see what deals you can get :)

thanks for your help

Use one of the calculators to see how much you could borrow - this is the Nationwide one:
www.nationwide.co.uk/mortgages/calculators/overview.htm

If your Dad makes the gift you will need a letter from your Dad confirming it is a gift and he has no claim on the property.

I would be very very careful - make sure you can still afford to make repayments if rates go up significantly, as you don't want to end up owing more than the value of the house, which is a risk if you have a low deposit.

We went to lloyds for a 130,000 loan with a 22,500 deposit it was 800 a month.

The interest rate was 4.5%. I'm not saying it was a good deal or a bad one but thats what we got told.

I forgot that was over 20years.

You have to pay to advertise! Be careful as rates are starting to rise. The low base rate has only helped while the bank of England has flooded the market with printed money(QE) but that is not unlimited and now that the rates the banks are lending to each other are rising so this will be passed on.

We got a 5 year loan for 5000 pounds fifteen years ago for our deposit ( but I think we got it after the mortgage had been agreed)