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second time buyers dilemma
10 Answers
We have a 3 storey terrace house, and a mortgage on it for �112,000 weve been in it for 5 years.We want to sell it and buy somewhere with a bigger garden, own drive etc.Anyways, 2 estate agents have given us conflicting advice, 1st says we are looking at at least 20% down on new house and the 2nd one says 10%.We had it valued today for 119,000, by the one thats told us we only need 10% down.So how do we get the extra, i mean do we go to our bank who we have the existing mortage with and grovel for the extra help, or what sorry to sound thick but need advice on motgage side of things.We understand about all the estate agents fees and home package fuel efficient pack rubbish and all that. Thanks for reading x
Answers
I would just go to a mortgage adviser at your bank and they will tell you all you need to know
07:37 Wed 02nd Sep 2009
-- answer removed --
Er Am I missing something here?
If you need an extra �4900 to get to a 10% deposit - you can't add it to the mortgage because that's what the deposit will be on!
That's what a deposit is - money that you're not borrowing on the mortgage
If you're trying to borrow �139,000 and you've got �7,000 deposit you have a 5% deposit
if you need to get 10% you'll need to borrow another �7K from a different source
If you need an extra �4900 to get to a 10% deposit - you can't add it to the mortgage because that's what the deposit will be on!
That's what a deposit is - money that you're not borrowing on the mortgage
If you're trying to borrow �139,000 and you've got �7,000 deposit you have a 5% deposit
if you need to get 10% you'll need to borrow another �7K from a different source
Yes I agree with jake-the-peg.
If you have �7,000 left over from the sale of your existing property then you obviously don't have a 10% deposit and will need to get the extra funds from elsewhere. Most lenders will ask where a deposit comes from and using a loan is usually not allowed.
It doesn't look to me like you can afford to move at present, not to a more expensive property anyway.
If you have �7,000 left over from the sale of your existing property then you obviously don't have a 10% deposit and will need to get the extra funds from elsewhere. Most lenders will ask where a deposit comes from and using a loan is usually not allowed.
It doesn't look to me like you can afford to move at present, not to a more expensive property anyway.
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