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Original poster

I need to go to the bank tomorrow and ask for £10k

38 replies

ALittleBitOfMagic · 07/08/2013 22:06

Then on Friday I need to go to a mortgage broker . I think I am going to get laughed right out the door . Both times Sad but I need to try there is an awesome and very rarely available house just came on the market I need to at least try .

Anyone have any advice I really have no clue what I am doing!

OP posts:
Talkinpeace · 07/08/2013 22:25

How much is the house?
How much is it really worth (put on your Victor Meldrew Hat)?
How much is your cash deposit?
How much are your earnings?

Why the bank and the mortgage broker?

If you can put down 30%
and earn 25% you should be OK

otherwise you need to think sideways

Ilovemydogandmydoglovesme · 07/08/2013 22:31

My DBil was refused a mortgage because he borrowed money. They decided that he couldn't afford both payments, even though he could. And that he owed money to a creditor. Even though it was actually his dad. Hmm

TinyDiamond · 07/08/2013 22:44

I don't think you'll be able to do this :( frustratingly it's one or the other.....similar thing happened to us recently although were borrowing £ from family not bank

Original poster
ALittleBitOfMagic · 07/08/2013 23:16

The 10k is for the deposit . I didn't think you could do it either but my friend just did it .

OP posts:
Talkinpeace · 07/08/2013 23:22

you cannot "borrow" the deposit - without lying and then they might call in your mortgage
also £10 k is less than 5%
so either its a Gideon 'bubble house' (AVOID)
or its a wreck

Original poster
ALittleBitOfMagic · 08/08/2013 00:18

talkin how do you know the vie of the house I am buying ? And actually you can borrow they deposit as I've said I didn't think you can either but you can .

OP posts:
NatashaBee · 08/08/2013 00:25

This reply has been deleted

Message withdrawn at poster's request.

AKissIsNotAContract · 08/08/2013 00:27

It would make more sense to speak to the mortgage broker before you borrow the 10k. 10k seems like a very small amount for a deposit. Either the house is very cheap or your income is very high.

Rules · 08/08/2013 00:28

Look like you know what your doing. Act confident. Have all your figures on paper and have answers ready. Good Luck Grin

Original poster
ALittleBitOfMagic · 08/08/2013 00:35

Actually I think I will speak to the broker first .

And where I live 10k is quite a substantial deposit . More than 10% of all the 3 bed semis about here that we are looking at .

OP posts:
NatashaBee · 08/08/2013 00:43

This reply has been deleted

Message withdrawn at poster's request.

Original poster
ALittleBitOfMagic · 08/08/2013 00:48

Serious question Natasha - how do people afford that kind of house ? I dont know anyone that could afford that . And I don't think there are any houses in my town that would go for that kind of money but if there are they will be 4/5 bed detached and probably new build .

OP posts:
AKissIsNotAContract · 08/08/2013 00:51

Where do you live OP? I can't imagine anywhere where homes are that cheap. I suppose the trade off is that wages are lower too.

NatashaBee · 08/08/2013 00:53

This reply has been deleted

Message withdrawn at poster's request.

Original poster
ALittleBitOfMagic · 08/08/2013 00:54

West of Scotland . Not saying actual town because I will totally put myself Grin

OP posts:
sydlexic · 08/08/2013 01:13

It is theoretically possible, the 10k would be unsecured and at a high rate of interest and short repayment term, so very expensive. If you can afford to pay both loans you would probably have some savings by now.

Monty27 · 08/08/2013 01:17

Take on the business proposition approach. They will possibly want figures and boring stuff. Don't let them rip you off.

Talkin knows it all not donchaknow? Confused

AKissIsNotAContract · 08/08/2013 07:25

DP and I have a combined income of 75k and we were refused a 140k mortgage because I had recently taken out a loan. The solution we were advised was to wait 3 months then reapply as our credit rating would then be improved. Maybe that'll work for you?

TinyDiamond · 08/08/2013 10:41

of course you can get houses for that. prices vary wildly in different places. I'm in Leicester and you could get a 3 bed house for under 100k too. good luck op, it's a minefield

TwasBrillig · 08/08/2013 10:45

I so live in the wrong place.

Talkinpeace · 08/08/2013 15:12

Natashabee
The government here backs mortgages so lenders are willing to lend to people with a less than perfect credit rating and with a smaller deposit.
Not for much longer. Fannie and Freddie are due to be wound up in the next ten years - and good thing too.

Alittlebit
You are in an unusually cheap area so yes, your numbers are feasible
BUT
as a qualified accountant who does mortgage references for my clients, lending criteria are horrific nowadays
and borrowing for a deposit is a no-no

self employed clients need two years of filed tax returns showing the correct income (no matter how long they have been in business) to get the mortgage

PearlyWhites · 08/08/2013 16:22

Where I live nice three beds with gardens are 60-65 k

RedHelenB · 08/08/2013 17:16

Wouldf it not be better to get the mortgage first, then the loan? I'm sure we did this way back in the dim distant past when we had no deposit but it was only £5000 over 5 years/

Mum2Fergus · 08/08/2013 17:49

You cannot used borrowed money as a deposit...you can be asked to prove where it came from. The loan repayments would also be deducted from amt you have available to pay mortgage as part of affordability criteria.

celticclan · 08/08/2013 18:52

But how will they know the deposit is borrowed?

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