What Would You Do?
- Thread starter wazza300
- Start date
You mean take equity from your home? Completely depends on how much equity you have etc.
Or you only need a £25k mortgage and unsure whether to get a mortgage or just loan it? You'll usually always get better interest rates with a mortgage.
Or you only need a £25k mortgage and unsure whether to get a mortgage or just loan it? You'll usually always get better interest rates with a mortgage.
I can't think of any reason why it would be best going for a loan over a mortgage to be honest.
Only issue being is that you're unemployed, but that would still be an issue in getting a loan.
Do you know how much the house is worth? You can then work out you Loan to Value ratio and by the sounds of it you'll have a very good LTV meaning you'll get a nice low rate and there are quite a few free fee mortgages around still meaning they cost nothing to set up.
Only issue being is that you're unemployed, but that would still be an issue in getting a loan.
Do you know how much the house is worth? You can then work out you Loan to Value ratio and by the sounds of it you'll have a very good LTV meaning you'll get a nice low rate and there are quite a few free fee mortgages around still meaning they cost nothing to set up.
It's 65% 90k (50k after discount)relative will lend me 25k and I need further 25k
Plan is to sell in 10 years time,10 year restriction
3.65% and fixed at 2.5% I think for first two years with first direct
Plan is to sell in 10 years time,10 year restriction
3.65% and fixed at 2.5% I think for first two years with first direct
Bit confused, the property is worth £90k? If you're only getting a £25k mortgage then that's a LTV of 28%?
It's worth thinking about though how you intend on paying back the relative's £25k (if you have too). It may be worth sticking this on the mortgage at 56% LTV for £50k mortgage is still good with low rates available.
It's worth thinking about though how you intend on paying back the relative's £25k (if you have too). It may be worth sticking this on the mortgage at 56% LTV for £50k mortgage is still good with low rates available.
You may struggle to get a good mortgage deal if you are unemployed (assuming no other reliable income stream), also loans from relatives can be frowned upon from what I understand. As it is a loan not a donation you would likely have to declare it to the mortgage lender.
A loan from a relative will be treated as borrowing and will reduce the amount a lender will make available to you (unless you lie and commit mortgage fraud). I.e your income is £25k and the mortgage lender operates a multiplier of 3 allowing you to borrow £75k, because you have already borrowed £25k they will only lend £50k.
The second issue is that they may consider the family debt as giving your relative an interest in the property, most mortgages are not ok with this as it creates complications for them - additional person to deal with if they need to repossess etc.
When I got my mortgage a year ago the general requirement was that you had to have been employed for more than 6 months and be out of any probation period.
Edit: A relative gave us £20k to purchase a property and HSBC would not have given us a mortgage if it was a loan for reasons above. We had to provide signed documentation from the relative confirming that it was a gift.
The second issue is that they may consider the family debt as giving your relative an interest in the property, most mortgages are not ok with this as it creates complications for them - additional person to deal with if they need to repossess etc.
When I got my mortgage a year ago the general requirement was that you had to have been employed for more than 6 months and be out of any probation period.
Edit: A relative gave us £20k to purchase a property and HSBC would not have given us a mortgage if it was a loan for reasons above. We had to provide signed documentation from the relative confirming that it was a gift.
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ahh thanks,didnt think about that
ill pop in soon as I can and ask about a mortgage,see what they say
just found out that first direct don't do right to buy mortgages,i think Lloyds do
I worked one out on mortgage calculator and 15 year mortgage for 25k works out at £40 a week,obv ill be paying off as fast as I can soon as I find work
ill pop in soon as I can and ask about a mortgage,see what they say
just found out that first direct don't do right to buy mortgages,i think Lloyds do
I worked one out on mortgage calculator and 15 year mortgage for 25k works out at £40 a week,obv ill be paying off as fast as I can soon as I find work
how long have you been unemployed for and were you in work for a fairly substantial period prior to the unemployment?
As people have said you may struggle being unemployed but some lenders may look on you has having the potential to earn, especially if you have skills in a sort after area.
As people have said you may struggle being unemployed but some lenders may look on you has having the potential to earn, especially if you have skills in a sort after area.
Its not going to happen, even with an ok paid job lending money off a relative that has an interest in that money is hard enough, it would be best having it as a gift or getting a solicitor draw a contract up.
Still your risk is massive, lending 25k to someone who earns nothing? you need to be in stable work out of probabtion. Going to a lender with a job you've 2 days won't cut it.
Still your risk is massive, lending 25k to someone who earns nothing? you need to be in stable work out of probabtion. Going to a lender with a job you've 2 days won't cut it.
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25k mortgage or 25k loan?
for buying a house,problem is currently unemployed,but gonna try and find something
any other way to borrow the money? biggest hurdle atm is not being in work
You won't get a loan or anything if you are unemployed! No matter how much deposit you have!
Maybe try reducing the house price by 25K ?
or buy a cheaper house?
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Unfortunately all above really.
If I was you I'd get a job ASAP (obviously!) and then look at this after you've been working for 6months.
I also definitely wouldn't take a loan off a relative. You shouldn't need too as you have good equity in the house anyway thanks to the reduction. Plus you won't really gain anything from doing it, especially if you're paying them back, with interest.
You'll be in pretty much the same situation in 10years time if you take the loan against just getting a £50k mortgage.
If I was you I'd get a job ASAP (obviously!) and then look at this after you've been working for 6months.
I also definitely wouldn't take a loan off a relative. You shouldn't need too as you have good equity in the house anyway thanks to the reduction. Plus you won't really gain anything from doing it, especially if you're paying them back, with interest.
You'll be in pretty much the same situation in 10years time if you take the loan against just getting a £50k mortgage.
yh I agree it sucks
3 months in employment you have to be before they will accept a mortgage
still think its prejudice against folks on benefits,i mean the state pays your mortgage when you lose your job?
anyone want to invest 25k in half share of the house? when I sell in ten years time you get half the sale price? can get a contract drawn up if you wish haha
3 months in employment you have to be before they will accept a mortgage
still think its prejudice against folks on benefits,i mean the state pays your mortgage when you lose your job?
anyone want to invest 25k in half share of the house? when I sell in ten years time you get half the sale price? can get a contract drawn up if you wish haha
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