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Original poster

Deposit for mortgage

33 replies

Panther79 · 11/04/2015 10:22

Hi everyone

I am looking for some advice and would be very grateful for any.

I am looking to get a mortgage. I have spoken to a mortgage advisor who has advised me to wait for another 3 months. Unfortunately the property I am looking at will be long gone by then and sadly I can't see anything in my budget for the next few years.

The advisor advised that I will have no issue getting the mortgage as I have sufficient income to cover the mortgage loan. However, I borrowed £10,000 from my employers for the deposit money and that's an issue. The repayment is 200 pounds a month and I have no other debts.

I was wondering if anyone has been successful in securing a mortgage in a similar situation.

Many thanks for an input.

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Original poster
Panther79 · 11/04/2015 10:23

Hi everyone

I am looking for some advice and would be very grateful for any.

I am looking to get a mortgage. I have spoken to a mortgage advisor who has advised me to wait for another 3 months. Unfortunately the property I am looking at will be long gone by then and sadly I can't see anything in my budget for the next few years.

The advisor advised that I will have no issue getting the mortgage as I have sufficient income to cover the mortgage loan. However, I borrowed £10,000 from my employers for the deposit money and that's an issue. The repayment is 200 pounds a month and I have no other debts.

I was wondering if anyone has been successful in securing a mortgage in a similar situation.

Many thanks for an input.

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reynoldsnumber · 11/04/2015 10:25

I haven't been in the same situation, but we have got a mortgage a few times. I don't understand why you need to wait 3 months? Did he/she explain why?

Original poster
Panther79 · 11/04/2015 10:26

The advisor said as the lender needs three months statements and this transaction will no longer appears on my statement.

Thank you for responding.

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Original poster
Panther79 · 11/04/2015 10:27

Sorry for double opening post. I am posting from cxxxy phone

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reynoldsnumber · 11/04/2015 10:29

Which transaction? The £10k coming in or the £200 a month repayment going out?

Original poster
Panther79 · 11/04/2015 10:31

The money coming in.
The money won't be going out until the mortgage has been sorted. My employers have been trying to help me.
Thank you.

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reynoldsnumber · 11/04/2015 10:37

Ok, then I'm not sure. You are planning to conceal the loan, effectively, then?

My granny gave me some money from my inheritance to buy our last house and her solicitor had to write and confirm that she had no 'interest' in the house as in she didn't think she owned any of it, and that she wasn't expecting the £25k back. Could your employers do that? (I woukd guess not as they would be lying!)

Fizrim · 11/04/2015 10:41

I can't see that waiting three months will make a difference as the forms from the solicitor/conveyancer will also ask if anyone has loaned you money for the purchase - you just need to say if they have an interest in the house or not, as reynoldsnumber said. But it is another loan payment to make, so the mortgage company should take it into account really. Is it the repayments you are trying to hide? Either way, I wouldn't recommend it!

Original poster
Panther79 · 11/04/2015 10:43

Thank you for that.

No I want to disclose it as a loan from my employers stating the terms etc.
I can get a letter from my employers that it's a loan and confirming that they have no interest in the property.

I was also thinking that I will have the same problem in 3 months or a year's or two times so I don't know why he wants me to wait for three months.

He said that lenders won't lend if I have borrowed from my employers.

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Original poster
Panther79 · 11/04/2015 10:47

No not trying to hide anything that's why I can't understand the logic behind waiting for three months.

I would like to proceed ahead by disclosing the loan I received.

The problem isn't the repayments.
As I mentioned my income is more than sufficient to pay for the monthly repayment as well as any mortgage.
I currently pay £1,000 on rent and I don't have any other financial commitments except for day to day living costs etc.

I don't know.

I would like to mention it and proceed ahead instead of waiting for months on end and sadly the property being sold.

It's all so confusing.

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EssexMummy123 · 11/04/2015 10:57

Talk to another broker then

Bearbehind · 11/04/2015 10:58

He said that lenders won't lend if I have borrowed from my employers.

But you will still have borrowed from your employers even if you wait 3 months. Hmm

Your mortgage advisor sounds like he's planning on trying to disguise the fact this has happened which is completey out of order and will bite you on the arse.

The lender might ask for more than 3 months statements and the solicitor will definitely need to know the source of the deposit so it'll come out then anyway.

Find a good whole of market broker as I think there are some (but very few) lenders who will accept a loan as a deposit providing you can afford the repayments on it and the mortgage- remember it's not what you think you can afford though- it's what the lender decides you can afford.

Original poster
Panther79 · 11/04/2015 10:59

That's what I was thinking to do. Thank you.
I just got disheartened after the advisor saying that. But I thought well he knows his stuff so he must be right.

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reynoldsnumber · 11/04/2015 11:01

That sounds really confusing then.

Is it an issue specific to this bank according to your adviser? Have you tried asking the bank yourself - just call the mortgage company and ask, as a 'what if' rather than a specific? Or ask your solicitor?

Alternatively, try another mortgage adviser, because this one doesn't seem to be helping you understand.

I found applying for a mortgage intensely frustrating - lots of people who you pay to help you being quite inept generally. Not sure that helps you, but I feel your pain!

Have you tried posting on money saving expert?

Original poster
Panther79 · 11/04/2015 11:02

@bear thank you

Yes that's what I thought too

And I don't want to end up in serious problems that's why I want to disclose it

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Original poster
Panther79 · 11/04/2015 11:06

@reynolds
I haven't tried my own bank. This advisor was recommended by a friend so I thought I would go with him.

I will speak to my bank next week.

Will try money saving as well thabk you.

At this point I don't want anyone to do a mortgage application for me as I don't want my credit report to show it. Currently it's 978/999 so I don't want to mess it up by having a rejected application if you know what I mean.

I just wanted to know if it is possible before proceeding ahead with an application etc.

Thank you to all of you for taking your time out on a Saturday. I appreciate

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Original poster
Panther79 · 11/04/2015 11:07

And no he didn't speak to any lenders. He just came out with it himself

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Bearbehind · 11/04/2015 11:16

Sadly you can't assume the mortgage advisor you spoke to knows what he is talking about- as in all professions there are good ones and bad ones.

The ones to be particularly wary of are in house estate agent advisors and in house bank advisors as, no matter how good they are, they don't have access to all lenders terms and therefore can't find the best lender for your circumstances.

This guy is being incredibly unprofessional- you can't hide things like the source of a deposit and think it'll all be fine.

Quitelikely · 11/04/2015 11:25

What a load of rubbish.

You can apply for your mortgage over the phone right now if you wish to.

They will give you an answer today and then off you go and put your offer in for your desired property.

Good luck!

Original poster
Panther79 · 11/04/2015 11:36

@bear yes thank you; that's my worry as well as I don't wish to hide something so major. I will speak to some other advisors and see my options.

@quite yes will try and do that over the phone if anyone open for business today and see my option

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Gingerandcocoa · 11/04/2015 11:36

Your mortgage advisor is completely out of line. Your lender will ask you where the deposit is coming from, and you should tell the truth (loan from employers), regardless of whether this shows or not on your bank statements. Your lender will then assess the affordability of the mortgage including the repayments you will need to make to your employers.

Your mortgage advisor is suggesting you lie on your application. I'd be looking for a new advisor if I were you.

Original poster
Panther79 · 11/04/2015 11:37

@ginger - my thinking too. I will look for someone else. Was recommended by a good friend so thought he was alright but I guess he isn't.

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YaTalkinToMe · 11/04/2015 11:38

Recently gone through a mortgage application and the money came from outside of my personal money from up to 1 year back, mortgage company wanted the bank statements of money going into my account, statements of person the money was coming from to show money leaving their bank and proof of where the money came from originally their side also.

SeattleGraceMercyDeath · 11/04/2015 11:42

We took out a loan and consolidated some debt and also had a bit left over to put towards our deposit. Our lender (Santander) are one of the few who accept a loan as a (part) deposit and we were upfront and it was calculated into affordability, our mortgage offer was posted out yesterday!

Original poster
Panther79 · 11/04/2015 11:42

@yatalking - exactly what I was thinking. The lenders have to query it due to money laundering issues etc. that's why I can't understand why he will say that. I will have the same issues am having now 3 months or a year down the line so it doesn't make sense to me.

I will take everyone's advice and speak to my bank or other advisors.

Thank you everyone. I appreciate the advices by everyone. Have a great weekend.

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