Single Mum Where to Borrow £9k for Mortgage

[bestlaidplans2015]

Evening, brain has started to melt somewhere between spreadsheets & floor plans. Looking to buy £29k property. Have £17k saved. Can borrow £6k from Mum. **Anyone know where I can secure a mortgage for £9k (£3k retained for fees) over 6 years as a single Mum of one? Have ample incoming via work (£7k+), wtc & chb to cover payments (< or =£8k, income dependent). Felt I could afford £75k mortgage but I'm reading no-one would lend to me without a Guarantor. Is that right? Any help would be greatly appreciated; on my knees here. I'm looking at a flat valued at £29k for crying out loud!

I doubt you would get a mortgage for 9k as most lenders have a minimum amount they will lend.

I would have a chat with a mortgage broker to see if want you want would be possible.

Does it need to be a mortgage? How about just an unsecured loan?

Had a look at loans; standard stipulation seems to be that funds can't go towards a property purchase. Going to see if I can speak to bank (Halifax ) tomorrow. Feeling somewhat desolate at prospect of saving for years to buy outright. Surely someone will loan me money; I'm surely not that risky an investment?

Why don't you get a mortgage? You have a large deposit and a small purchase price.

Last time I looked at getting a mortgage the minimum you could borrow was £20k. Intrigued- where can you buy property for £29k?

Thanks for replies everyone. All the on-line tools & calculators are throwing back "computer says no". Thinking a few phone calls to banks and lenders is gonna clarify position. As for buying for £29k, it's one of the only benefits of living in an economically deprived area.

Get a mortgage for 20k, put down 9k deposit and put the rest of your savings in an offset account linked to your mortgage and this will give you better interest rate. Or get a flexible mortgage for 20k and pay it off quickly with your savings. Well done you.

Agree with Belliniteeny, that will be your best way of doing it. Offset will give you a next to nothing or nothing interest rate and flexibility to pay it off quicker. Even if you end up (worst case scenario), having to fix for a couple of years, you can either pay it off quicker and incur some charges or wait until the 2 years is up and pay it off penalty free.

Halifax have a minimum property value of £40k for purchasing.. not sure if other lenders are the same.
I'd imagine this is so there is enough value to offset their risk of lending in case of defaults.
Your best bet would be a broker who will know about specialist mortgages. Get one without a fee (your interest rate will likely be slightly higher as the lender will pay them for it but won't break the bank on a small mortgage).

Really appreciate all the advice I've received; it's most helpful. Thank you all for contributing.

I've requested a mortgage appt with local Halifax branch. There's a further property going under auction (£45k ono) which I can discuss alongside £29k (guide price). Had no idea about limits (£40k) or offsetting. Will update thread with advice received.

There's been alot of tears this morning due to lack of sleep & stress. Time to dust myself off & keep on climbing!

Oh bless you, that sounds hard. I know several friends have used London and County brokers (no fee) could be worth speaking to them and they can look at the market for you.

It sounds like you'd be best seeing an independent mortgage adviser. Ours cost about £300 (only payable if we ended up getting a mortgage through her) and was hugely useful, and we had a pretty regular situation.

Bestest luck... keep us posted

Update

Halifax seems to be one of few banks willing to account for all a single parents incomings.

The advice regarding lenders not willing to risk properties below £40k appears to be spot on.

I got a provisional offer via Halifax of £18k. They advise I apply for the Lift Scheme. Was accepted. They were willing to contribute a maximum of 40% of property value. Found house. Applied via Lift to make offer. Offer accepted. Returned to bank to confirm mortgage. Offered significantly more - £40k. Opted to undertake a mix to hedge my bets (home repairs, inflation, base rates, interest rates, supply/demand in area).

The Lift Scheme staff have been very quick to respond at every stage and to every query. Their website explains it all quite simply and the paperwork they provide at each stage is clear. Key points are:
There's no interest
They prompt you to try repay their share at intervals but you're under no obligation to do so
The repayment is the same percentage of their initial stake regardless if the property goes up in value or down
They accepted offers when selling at 95% of Home Report valuation but this can be reviewed in extenuating circumstances
Max payment 40% home valuation
Estimate doubling your Solicitor fees (yet to be confirmed) as the process requires input from their Solicitors on top of yours
Each time you make arrangements to pay off Lift you'll incur Solicitors fees - I'm aiming for a oner

Thanks to everyone who took the time to respond. It was very much appreciated. I hope this update gives someone in a similar boat hope. Nothing is impossible and there are people out there who care x

Well done OP!

Great update and best wishes