No Equity for a Deposit

Posted on 20 May 2010 by susan

My partner and I currently own a house worth £150,000 and we owe £150,000.  We would like to move to a house worth £250,000.  Would I need to find another deposit to move, i.e, since we won't be making a profit I'd need to find 10% of the £250,000 mortgage?


At the moment there are no mortgage products for new borrowers for loans above 90% of the purchase price. It is possible that your existing Lender may have a 95% deal and I would check with them first.

Either way, you are going to need to raise a deposit for your new purchase and Lender's can be quite particular about where this comes from. Many Lenders will not accept an application if they can see you have taken a personal loan out recently or if the deposit has been given to you and must be repaid in the future. This is because experience has shown them borrowers who do not invest a personal stake in the property are more likely to fall into arrears and end up having it repossessed.

I regret I am unable to advise you how to raise the deposit, but a non repayable gift from a family member is acceptable to nearly all Lenders.


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