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Mortgage deposit...

8 replies

Mum2Fergus · 07/05/2012 21:29

We are keen to get on the property ladder with our DS fast approaching school age, Id like to be settled in place of our own so as not to risk having to find anywhere new should tenancy be called in. We both earn a good wage, DP has some debt courtesy of ex wife, but I know Id get a good mortgage in my name alone, and I have a good credit score. Challenge is getting deposit together! Every time we get somewhere, something comes up, most recent was a 2k+ car repair bill :( so my question is, could I take out a personal loan to top up my deposit funds without it impacting mortgage application!? Have done my sums and could afford both loan and mortgage repayments...ant thought/advice folks?!

OP posts:
RockChick1984 · 08/05/2012 10:32

Any personal loans would impact how much you can borrow on a mortgage. However, even without this the official answer is no, as you would effectively be borrowing 100% of the house value which defeats the idea of needing a deposit.

If you could get a mortgage in just your name, could DP take a loan for the deposit? That way you are able to tell the bank your deposit was from him, they don't need to know he took a loan for it!

RedHelenB · 08/05/2012 14:04

We did but that was 15 years ago.

lizzywig · 08/05/2012 15:33

Afraid it's a big no no these days.

Mum2Fergus · 08/05/2012 20:17

DP could apply for the loan and 'gift' the money to me, that may be an option! Will give it more thought while I keep squirrelling lol thanks folks'

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RandomMess · 08/05/2012 20:19

The interest rates will only go up, please do not over stretch yourselves!!!!

girlgonemild · 22/05/2012 11:03

Have you considered any of the housebuilders/government schemes which would give you the deposit to start off with? They aren't ideal as they tie you to newbuilds but might be an option for you.

Mum2Fergus · 22/05/2012 21:29

Unfortunately a lot if those deals apply in England and Wales only, Im in Scotland. I was in touch with a couple of builders that are offering 100% mortgages but did not meet their criteria (you have to currently live or work in certain postcode areas) ... still squirrelling away meantime!

OP posts:
tittytittyhanghang · 22/05/2012 21:34

yes technically you could get a loan to use as a deposit but it would be counted in when they decide how much mortgage you could obtain. If you can afford it and the mortgage is going to be in your sole name, then I would suggest your dp getting a loan and gifting it to you to use as a deposit as this would not be counted against when you apply for a mortgage.

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