Anyone here with knowledge about mortgages?

[Rainbowhairdontcare]

I think we won't be able to buy our house in the end. It turns out that I misunderstood and thought that the lingo of "maximum 15%" meant that a 10% deposit would be acceptable as long as the house was purchasable with mortgage amount + deposit.

It turns out it isn't (or so it seems) and we don't have that £10k to put it on top of our deposit.

Did they explain why? Have you used a mortgage broker? 10% is usually fine under normal circumstances.

I'm using one yes, but I know it was my misunderstanding (although I thought there was no real difference between 10-15% LTV).

I'm confused by your post. It sounds like you were looking at mortgages with maximum 15% LTV and you want to put down a 10% deposit which is 90% LTV. What is your broker doing for their fee if not explaining these things to you?

The broker and I always bounced between 10% and 15%, in fact in the end I'm pretty sure I told him over the phone that I wanted to go for a 10% one as it made no real difference in terms of APR.

The MIP said a maximum of 15% LTV. Actually it was only after I read an email (today) regarding a different property that he clarified the approval was based on a 15% LTV.

I always based the purchase of the house on the maximum lending figure.

I take it you mean maximum 85% LTV (ie 15% deposit) and you have settled on a 10% deposit so need a 90% LTV mortgage?

As the bank is taking more of the risk, the rates are higher for 90% against 85% mortgages. Could you take the mortgage out over longer which would make it more affordable to pay back savings? Are you able to add to the deposit and don't want to, or will you not be able to make that figure?

It looks like the higher deposit will leave us with racing to get a mini loan for the stamp duty.

We'll also have to compensate the vendors as it will take us a bit longer to get that deposit.

There's £30k give or take. For us it's financially better to have a 10% deposit and pay our credit cards than to have a 15% deposit and not clear the debt at all

The question if when are we supposed to clear those cards has just been raised as it was always my understanding that it was on completion and not to be proven at the same time as the deposit